Fintech startup Jaja Finance closes £5m crowdfunding round
London-based credit card fintech startup Jaja Finance has confirmed the final close of its crowdfunding round after picking up £5milion.
An additional £1.5m from Celeres Investments, adding to seed funding raised last year, means the crowdfunder has now raised more than £5m.
The startup has been backed by Blystad Group and Pollen Street Capital among others. More than 1,000 private investors took part in the crowdfunding raise on Seedrs.
Jaja Card is a digital credit card managed entirely through the Jaja mobile app and purpose-built for the needs of customers.
There are no complicated forms to fill in and new customers can be up and running within minutes, requiring only a driving license or passport to get started.
Jaja co-founder Kyrre Riksen told City A.M. the startup plans to use the funding to launch its credit card product and increase hiring at its London office, with a target of 45 in-house staff by the end of 2019.
The platform started onboarding users from its waiting list this month to trial its mobile-only credit card product, disrupting a market in fintech that has previously been dominated by rival bank Tandem.
Riksen said the startup will pursue a full banking licence in the future, but for now it is focused on the credit sector.
"There’s been a lot of innovation on the debit side, from startups like Monzo and Revolut," said Riksen. "[But] there’s not been much innovation in the credit space. I believe a lot of people are shying away from the challenge of monitoring a portfolio and a funding line. We've chosen to invest in a team that’s well equipped to handle these things."
Jaja Finance is working closely with Visa as a Principal Member - meaning they can issue cards, process transactions, provide processing services and acquire merchants directly, supported by the Visa Investment and Strategic Partnership program.