In a latest development, a consortium of investors led up by private equity heavyweights KKR and TDR Capital has committed to fund up to £120m in credit card lender Jaja Finance, after taking majority control of the company.
Headquartered in London, Jaja Finance announced a change in ownership in November 2021, with a consortium led by KKR and TDR Capital becoming the majority shareholders in Jaja Finance. Original investors, including IAG Silverstripe, retain significant holdings.
The majority shareholders will support the digital lender’s ambitious growth plans over the coming years. Jaja intends to use the initial investment to fuel its growth plans while driving the transformation of consumer credit. Its growth will be underpinned by a significant recruitment drive that will see a 40% uplift in its product and data science, software development, engineering and IT teams before the end of 2022.
David Chan, CEO at Jaja Finance, said: “Announcing the support of two leaders in the investment industry represents a considerable show of confidence in Jaja’s growth story, our plans and our people. Our new shareholders will bring valuable insights to the business and will help support our mission to offer best-in-class core technology, products and services, while delivering innovation that matters to customers.”
Credit funds and accounts managed by KKR first invested in Jaja in 2019 in conjunction with an acquisition of a UK credit card portfolio and have continued to invest in the business since.
Founded in 2015 by three Norwegians, Jaja Finance is a fintech providing digitally-led credit card products with a focus on simplicity, functionality, service and security. It is headquartered in London and regulated by the FCA, and combines the technical and digital capabilities of a modern technology business with deep retail financial services and credit card sector experience. As part of its long-term partnership with the Bank of Ireland signed in June 2019, Jaja welcomed Bank of Ireland UK and AA Credit Card customers onto its new credit card platform in October 2020, transferring historical Post Office Credit Cards to new Jaja Credit Cards.
— Press release