JAJA
Introducing the next generation credit card for your mobile, built around you.
- Location
- London, United Kingdom
Categories: Finance & Payments Digital Mixed B2B/B2C
-
Investment
sought: - £3,000,000
-
Equity
offered: - 13.63%
-
Investment
amount: - £4,957,534
-
Valuation
(pre-money): - £19,006,371
Team
-
Co-founder and Deputy CEO -
CIO & Co-founder -
CMO & Co-founder -
CEO -
CRO
Idea
Introduction
Join our mission to redefine the world of consumer finance. We started Jaja to make a mobile-first credit card that’s far simpler, fair and transparent for busy people living modern lifestyles.
By giving control back to the people, we believe our mobile controlled credit card can give people more freedom. We believe the credit industry requires a major upgrade, and we have a pipeline of consumer finance products in the making.
Jaja Finance Holding AS, who you are investing in, is a holding company existing solely as the owner of Jaja Finance Limited, a company registered in England and Wales, company number 09797750. Jaja is authorised and regulated by the FCA as an Authorised Payment Institution and Consumer Credit Firm and Principal Member of Visa, allowing the issuing of cards on behalf of third parties.
We have already launched instant online credit for our partner ASDA (part of Walmart), and issued and tested our Jaja app and card successfully with our partner Visa.
Intended impact
Why fill out complicated forms and wait days when you can simply scan your driving license or passport to get approved in seconds with instant digital credit card access ready for use online while you await your physical card?
Once signed up, you'll be able to simply tap your digital credit card to set up online payments and control everything from your mobile; track your spending and activities in real-time with your smart timeline and intelligent notifications, repay instantly anytime at the touch of a button; helping you to plan ahead and repay responsibly.
When your life is constantly social, why shouldn´t you be able to share your credit limit easily with your family and friends, all whilst staying in complete control?
Why are credit products offered in silos? Instead, convert parts of your credit balance into an instalment loan to save money or top up your minimum credit card balance to your current account to avoid penalties and charges.
Substantial accomplishments to date
1. Built a scalable platform for consumer credit products such as Credit Cards, instant line of credit for eCommerce and instalment loans.
2. Authorised and regulated by FCA with Consumer Credit License and Authorised Payment Institution license.
3. Built a unique credit card proposition from the credit ledger up, issued and tested live Jaja credit card and app in Visa network successfully. Beta launch ready for launch in initial UK market.
4. Instant online line of credit, JajaPay, launched with ASDA (part of Walmart). Tested scoring, repayments, servicing etc. in live closed loop environment.
5. Built strong team with UK consumer credit card and tech experience.
6. Successfully created and tested one of the fastest sign up processes of any credit card in the UK.
7. Raised £4.2 mill in equity thus far and have recently secured a £100 million funding line for lending.
8. Secured principal membership with Visa, enabling Jaja to issue consumer finance products on behalf of other brands and retailers helping to drive lower customer acquisition costs and increased scalability.
Jaja intends to launch its Beta product in staged phases:
- Friends, Family and Business Partners in November 2018 (Private Beta).
- Seedrs investors offered exclusive VIP access in January 2019 (Private Beta).
- Other waitlist participants February 2019 (Public Beta).
Monetisation strategy
We believe that our business model based on interest revenue from a revolving line of credit is sustainable and has been proven in other businesses.
Jaja intends to grow its customer base through its two products, Jaja credit card and Jaja Pay. Both products represent substantial opportunities for white-labelling (B2B2C). Jaja will have tested all live components (i.e scoring, repayment, customer servicing etc.) before the Jaja credit card is launched publicly.
Use of proceeds
We will use the funds raised to execute the following:
1. Launch 5,000 BETA credit cards in order to create a loyal community, and gain momentum around launch.
2. Operations and 24/7 customer service.
3. Customer acquisition / distribution / marketing activities.
Please note that the company has £100k of director loans. Funds raised as part of this round will not be used to pay this.
Investment worth 26.87m NOK is being reflected in the campaign at an exchange rate of NOK:GBP 10.75.
Please note that an investor who has invested £2,000,000 in this round will receive shares that benefit from anti-dilution rights until June 2020. This means that if the company issues shares at a share price less than NOK 11.35 (£1.05) (the share price of this funding round) before June 2020, this investor will be granted shares at nominal value in order to maintain their percentage ownership of the company. If this occurred it would dilute Seedrs investors. The shares purchased by investors via Seedrs will not benefit from the same anti-dilution rights
Market
Target market
Tech Forward.
10%, 4.7 mill of UK population.
These families have a high tech focus and use social media widely. There are lots of devices in the home and families are connected.
Financially Confident.
15%, 7.3 mill of UK population.
This segment tends to be Generation X, working full time and have lots of disposable income. They are fairly confident with technology and have at least one dependent living at home.
Busy Lives.
9%, 4.5 mill of UK population.
These individuals are in the younger stages of their lives and most likely to be single, married or co-habiting. They tend to have no children or dependents and lots of devices to manage their lives.
In addition, Jaja has built a core infrastructure that can deliver flexible lending directly to the consumer or via point of sale retailer websites. Our first B2B customer is Asda (part of Walmart).
Characteristics of target market
Our target market covers approx 34% of the population, equating to 16.5m individuals and whilst their ages, occupations and family make up differs from young professionals to established older families, they are united in mindset and financial behaviours.
These are confident users of financial services products with experience with credit cards and lending. They are comfortable using credit for everyday spending and online purchases and seek out products with appealing rewards, especially if it can benefit their interest in frequent travel and spending abroad.
They are also united in their combined desire to try new and exciting things, early adopters of tech and comfortable taking calculated risks in doing so. This is carefully balanced however with the need to always be in control and 'on top of things' financially.
Marketing strategy
We have done extensive research into our customers. Where they are, what media they are most active on and what brands they like. This has given us a wealth of information about how we should look, behave and talk to the people we want to attract.
We understand that our audience responds best to peer recommendations and word of mouth. So we will be ensuring our product experience is superior. This starts with successful, frictionless on-boarding of our wait list. We believe in our product and therefore will aim to ensure that positive engagement with our brand is sharable and that members can easily invite new people to try our product.
In terms of media strategy, we will be focusing on the accurate and targeted use of the research data. Using channels like programatic display and paid social to deliver relevant messages at the right time to the right people.
Competition strategy
There are many old school players in the card and point of sale market such as Barclaycard/Barclays, MBNA, Lloyds, Capital One. We believe that the only real competitor in the mobile first credit card market is Tandem. We think we are more "next generation" than our peers because of the speed of sign-up to instant issuing; the degree of control; the wide range of capability and the consideration/treatment of the customer across all unsecured lending lines. We fully consider credit worthiness; affordability and we go through thorough KYC checks. We're able to do this very quickly whereas the antiquated systems of competitors takes a long time.
By integrating with retailers we'll be able to collect more data about our users, which will help us deliver more intelligent and personalised services (using machine learning). A key differentiator is having one integrated platform supporting all credit products as we develop our data and capabilities in AI/ Machine learning.
Idea
Introduction
Join our mission to redefine the world of consumer finance. We started Jaja to make a mobile-first credit card that’s far simpler, fair and transparent for busy people living modern lifestyles.
By giving control back to the people, we believe our mobile controlled credit card can give people more freedom. We believe the credit industry requires a major upgrade, and we have a pipeline of consumer finance products in the making.
Jaja Finance Holding AS, who you are investing in, is a holding company existing solely as the owner of Jaja Finance Limited, a company registered in England and Wales, company number 09797750. Jaja is authorised and regulated by the FCA as an Authorised Payment Institution and Consumer Credit Firm and Principal Member of Visa, allowing the issuing of cards on behalf of third parties.
We have already launched instant online credit for our partner ASDA (part of Walmart), and issued and tested our Jaja app and card successfully with our partner Visa.
Intended impact
Why fill out complicated forms and wait days when you can simply scan your driving license or passport to get approved in seconds with instant digital credit card access ready for use online while you await your physical card?
Once signed up, you'll be able to simply tap your digital credit card to set up online payments and control everything from your mobile; track your spending and activities in real-time with your smart timeline and intelligent notifications, repay instantly anytime at the touch of a button; helping you to plan ahead and repay responsibly.
When your life is constantly social, why shouldn´t you be able to share your credit limit easily with your family and friends, all whilst staying in complete control?
Why are credit products offered in silos? Instead, convert parts of your credit balance into an instalment loan to save money or top up your minimum credit card balance to your current account to avoid penalties and charges.
Substantial accomplishments to date
1. Built a scalable platform for consumer credit products such as Credit Cards, instant line of credit for eCommerce and instalment loans.
2. Authorised and regulated by FCA with Consumer Credit License and Authorised Payment Institution license.
3. Built a unique credit card proposition from the credit ledger up, issued and tested live Jaja credit card and app in Visa network successfully. Beta launch ready for launch in initial UK market.
4. Instant online line of credit, JajaPay, launched with ASDA (part of Walmart). Tested scoring, repayments, servicing etc. in live closed loop environment.
5. Built strong team with UK consumer credit card and tech experience.
6. Successfully created and tested one of the fastest sign up processes of any credit card in the UK.
7. Raised £4.2 mill in equity thus far and have recently secured a £100 million funding line for lending.
8. Secured principal membership with Visa, enabling Jaja to issue consumer finance products on behalf of other brands and retailers helping to drive lower customer acquisition costs and increased scalability.
Jaja intends to launch its Beta product in staged phases:
- Friends, Family and Business Partners in November 2018 (Private Beta).
- Seedrs investors offered exclusive VIP access in January 2019 (Private Beta).
- Other waitlist participants February 2019 (Public Beta).
Monetisation strategy
We believe that our business model based on interest revenue from a revolving line of credit is sustainable and has been proven in other businesses.
Jaja intends to grow its customer base through its two products, Jaja credit card and Jaja Pay. Both products represent substantial opportunities for white-labelling (B2B2C). Jaja will have tested all live components (i.e scoring, repayment, customer servicing etc.) before the Jaja credit card is launched publicly.
Use of proceeds
We will use the funds raised to execute the following:
1. Launch 5,000 BETA credit cards in order to create a loyal community, and gain momentum around launch.
2. Operations and 24/7 customer service.
3. Customer acquisition / distribution / marketing activities.
Please note that the company has £100k of director loans. Funds raised as part of this round will not be used to pay this.
Investment worth 26.87m NOK is being reflected in the campaign at an exchange rate of NOK:GBP 10.75.
Please note that an investor who has invested £2,000,000 in this round will receive shares that benefit from anti-dilution rights until June 2020. This means that if the company issues shares at a share price less than NOK 11.35 (£1.05) (the share price of this funding round) before June 2020, this investor will be granted shares at nominal value in order to maintain their percentage ownership of the company. If this occurred it would dilute Seedrs investors. The shares purchased by investors via Seedrs will not benefit from the same anti-dilution rights
Market
Target market
Tech Forward.
10%, 4.7 mill of UK population.
These families have a high tech focus and use social media widely. There are lots of devices in the home and families are connected.
Financially Confident.
15%, 7.3 mill of UK population.
This segment tends to be Generation X, working full time and have lots of disposable income. They are fairly confident with technology and have at least one dependent living at home.
Busy Lives.
9%, 4.5 mill of UK population.
These individuals are in the younger stages of their lives and most likely to be single, married or co-habiting. They tend to have no children or dependents and lots of devices to manage their lives.
In addition, Jaja has built a core infrastructure that can deliver flexible lending directly to the consumer or via point of sale retailer websites. Our first B2B customer is Asda (part of Walmart).
Characteristics of target market
Our target market covers approx 34% of the population, equating to 16.5m individuals and whilst their ages, occupations and family make up differs from young professionals to established older families, they are united in mindset and financial behaviours.
These are confident users of financial services products with experience with credit cards and lending. They are comfortable using credit for everyday spending and online purchases and seek out products with appealing rewards, especially if it can benefit their interest in frequent travel and spending abroad.
They are also united in their combined desire to try new and exciting things, early adopters of tech and comfortable taking calculated risks in doing so. This is carefully balanced however with the need to always be in control and 'on top of things' financially.
Marketing strategy
We have done extensive research into our customers. Where they are, what media they are most active on and what brands they like. This has given us a wealth of information about how we should look, behave and talk to the people we want to attract.
We understand that our audience responds best to peer recommendations and word of mouth. So we will be ensuring our product experience is superior. This starts with successful, frictionless on-boarding of our wait list. We believe in our product and therefore will aim to ensure that positive engagement with our brand is sharable and that members can easily invite new people to try our product.
In terms of media strategy, we will be focusing on the accurate and targeted use of the research data. Using channels like programatic display and paid social to deliver relevant messages at the right time to the right people.
Competition strategy
There are many old school players in the card and point of sale market such as Barclaycard/Barclays, MBNA, Lloyds, Capital One. We believe that the only real competitor in the mobile first credit card market is Tandem. We think we are more "next generation" than our peers because of the speed of sign-up to instant issuing; the degree of control; the wide range of capability and the consideration/treatment of the customer across all unsecured lending lines. We fully consider credit worthiness; affordability and we go through thorough KYC checks. We're able to do this very quickly whereas the antiquated systems of competitors takes a long time.
By integrating with retailers we'll be able to collect more data about our users, which will help us deliver more intelligent and personalised services (using machine learning). A key differentiator is having one integrated platform supporting all credit products as we develop our data and capabilities in AI/ Machine learning.
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