Jasper Card Announces $34 Million Funding Round
A FinTech with an aim at changing the way consumers qualify for credit cards has raised an impressive sum to help further that goal. This week, Jasper Card revealed that it had closed a $34 million funding round — which includes $10 million previously announced in 2020. The Series A was led by Benslie International Fund, with participation from 500 Startups, Gauss Ventures, Off The Grid Ventures, OurCrowd, and SIBF. With these funds, Jasper intends to introduce a new line of financial services while continue developing its platform.
Formerly known as CreditStacks, Jasper offers a rewards credit card that utilizes algorithm-driven underwriting as opposed to traditional credit models. According to the company, it’s provided more than 15,000 customers with access to credit cards (issued by WebBank), with these cards then being used to spend upwards of $90 million. They also note that their Jasper Card program has been growing 20% month-over-month.
The Jasper Mastercard made its official debut earlier this year, offering users up to 6% cashback on purchases. In order to unlock that sky-high rewards level, customers will need to refer friends to the product. While Jasper Mastercard users will earn 1% cashback by default, they’ll gain an extra 1% cashback for a full year with each person they refer — with the referred customer also earning an extra 1% for one year. This means that those who refer 5 friends in a 12-month period will reach that 6% cashback cap.
Sharing the vision and need for Jasper Card, the company’s founder and CEO Elnor Rozenrot said in a press release, “It’s time to present a new disruptive way for people to manage and grow their personal finances. Many banks have flashy websites and mobile apps, but the essence of the digital revolution that’s democratized so many parts of our life—win-win, fairness, the economy of one—has not followed.” Rozenrot continued, “Imagine all your financial products, whether it’s credit cards, bank accounts, or loans, combined into one single service that just works for your benefit. That is exactly what we’ve set out to do, and we are on track to give our customers back most of what many financial institutions have taken for themselves.”
Meanwhile, new Jasper Card board member (and Personal Capital vice-chair) Mark Goines said of developing the company’s underwriting model, “This has been a mammoth undertaking, and I’m proud to join an amazing team that has more than 150 years of experience in building and running businesses and financial companies, with a shared belief that banking should be made to work for customers.”
Jasper Card is one of several FinTechs that has taken an interest in changing the credit landscape. While their Jasper Mastercard has already allowed them to innovate in that department, this significant Series A funding will likely help allow them to introduce other innovative products. That’s not only a win for the company itself but could be a big benefit to those looking to build credit while earning rewards.