There’s a new credit card. I’m not entirely convinced by it (mainly because of its name tbh) and I can’t see they’re doing anything that new but they’re crowdfunding on Seedrs. What do you all think, have I missed an obvious selling point?
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Looks like a competitor to Tandem 
High interest rate though - I’ll stick with my curve for all credit card spend
Having fired off a few questions to one of JaJa’s founders on another forum (it’s pronounced YaYa btw) it’s a bit more interesting than I first thought. Convert part of your balance into instalment based loan, instantly issued digital card and “remove the silos in the credit space”. That last bit sounds like it’s very meaningful and important but I need to google it to be sure 
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Here are some of it’s features seems interesting: -
Key features of JaJa include fast onboarding, the ability to tag and search transactions and the option to share credit limits with trusted friends and family. Repayments and account settings can all be managed within the app, which provides links to bank accounts for paying off credit.
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Do they mean offering part of your credit to others and becoming a guarantor?
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£18m Pre-money Valuation seeking £3m for 14.25% Equity:
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without seeing the pitch it sounds like they’ve overvalued the current offer, should be interesting to see what they actually have so far to justify this.
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I agree. They’ve raised £7m to bring the company to this stage; now Round 1 crowdfund.
Freetrade raised a similar amount but @ R3 but with a more convincing disruptive model & addressable market, etc imho.
Be interesting to see their pitch soon.
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If this is the case, I can see it all ending in tears…it’s never a good thing to lend money to family or friends, never mind allowing them credit from your credit card!
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Yep and there’ll people who don’t realise being a guarantor is more than just vouching for someone, it is agreeing to make good on the debt and any fees if the debt isn’t paid.
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Seems like a competitor.
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Lol, isn’t it a startup? Where did they find the £530m to fund this acquisition?
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maybe they put it on a card?
Not sure who their backers are but they had a deal with Asda which would have helped
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Still isn’t £530m in cash like an enormous amount of money for a startup to hold? If they have £530m in cash assets, they might as well be worth more than monzo? I don’t think they even register as a unicorn?
Unless it’s a leveraged buyout, bankrolled by someone else.
BoI said that in 2018 the credit card business contributed 35 million pounds of total income and had operating expenses of 36 million pounds.
src:Bank of Ireland to sell its UK credit card business
From the above linked article.
Jaja’s deal is being done in partnership with KKR, Centerbridge Partners and other unnamed investors, who are helping finance the acquisition and are also putting £20 million ($25 million) of equity investment into Jaja (pronounced “yah-yah”) alongside it. Prior to this, Jaja had raised about about $16 million, including about £3 million by way of the Seedrs crowdfunding platform.
The company is not disclosing its valuation amid this $671 million purchase.
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Jaja’s deal is being done in partnership with KKR, Centerbridge Partners and other unnamed investors, who are helping finance the acquisition and are also putting £20 million ($25 million) of equity investment into Jaja (pronounced “yah-yah”) alongside it. Prior to this, Jaja had raised about about $16 million, including about £3 million by way of the Seedrs crowdfunding platform
Thanks, so it’s a leveraged buyout. That makes more sense.