Jaja Finance announces strategic investment to grow digital consumer lending business
Jaja Finance provides digitally-led credit products with a focus on simplicity, functionality, service and security
Consortium, including entities affiliated with existing shareholder KKR and new shareholder TDR, to become the majority shareholders of Jaja
Investment to drive public launch of Jaja’s Credit Card and other initiatives
Digital lender Jaja Finance Ltd (“Jaja”) today announces that a consortium of investors, led by existing shareholder KKR and including entities owned by investment funds managed by TDR Capital LLP, have reached an agreement with Jaja to become majority shareholders of the business. This transaction will support Jaja in its ambition to become the digital consumer lender of choice in the UK. Jaja was advised in relation to the transaction by Jefferies. Financial details of the transaction, which is subject to customary regulatory approvals, were not disclosed. Original investors, including IAG Silverstripe, will retain significant holdings.
Jaja was founded to provide digital-first credit solutions with a focus on simplicity and service. The additional investment will enable Jaja to continue investing in its consumer credit offering as it prepares to launch its Jaja-branded credit card in the UK, as well as to develop its range of products. The Jaja team is expected to grow significantly over the course of 2022, with a particular focus on product and data science, software development, engineering and IT operations, in order to best position the company to deliver a full suite of leading products and services.
David Chan, CEO of Jaja Finance, said, “We are pleased to reach this agreement with KKR and TDR which validates the confidence we all have in our platform and our people. With the backing of the new majority shareholders, we are looking forward to our next phase of growth with our credit card launch, as well as the development of credit propositions for our customers, fuelled by our agile technology and machine learning analytics capability.”
“As existing shareholders in Jaja, we have been impressed with its development and look forward to backing its transformation and growth along with our new strategic partners,” said Vaibhav Piplapure, Managing Director of KKR.
Chris Jones, Partner at IAG Silverstripe, said: “As a supporter of the business since its inception, we are delighted with this transaction. KKR and its strategic partners bring a great track-record of developing and growing businesses. This, along with the excellent team and platform at Jaja, will propel the business to the next level and beyond.”
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. Existing investors also include the Future Fund, the UK government scheme launched to support high-growth British businesses through the Coronavirus pandemic.
Notes to editors:
About Jaja Finance
Jaja Finance Ltd 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 their 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. Since then, Jaja have made continual improvements to their services for existing customers and completed full beta testing in readiness for their imminent opening to new customers in the UK market.
KKR is a leading global investment firm that offers alternative asset management and capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries.
For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.
About TDR Capital LLP
TDR Capital LLP is a London-based private equity firm which manages investment funds with over €10 billion of committed capital. TDR seeks to invest in market-leading, European businesses and partner with them to develop and grow their operations.
Since its founding in 2002, TDR has been creating value by applying a high impact approach to a focused portfolio of companies. Portfolio companies of TDR include, among others: Arrow Global, Asda, David Lloyd Leisure, EG Group and Stonegate Pub Group.
IAG Silverstripe is a private investment group focused on UK financial services, where their principals have been investing since 2013. IAG Silverstripe is the UK arm of IAG Capital, a private US investment office that has had unrivalled success over 30 years across speciality finance private investments. In addition to Jaja, IAG Silverstripe’s UK portfolio includes a substantial stake in Zopa Group Ltd.
About Future Fund
The Future Fund was established to support the UK’s innovative businesses affected by Covid-19. These businesses were unable to access other government business support programmes, such as CBILS, because they are either pre-revenue or pre-profit and typically rely on equity investment.
The Future Fund, now closed to new applications, provided UK-based companies with convertible loans, on the condition that third-party investors at least match the Government’s commitment. The convertible loans are designed to convert into equity at the next equity funding round. The Future Fund was developed by the UK Government and delivered by the British Business Bank.