Cardless, a leading fintech company specializing in co-branded credit card solutions, has announced a successful $30 million growth investment round. The round was spearheaded by Activant Capital and featured participation from prominent investors like Mischief (co-founded by Plaid’s Zach Perret), Industry Ventures, Thayer Ventures, Assurant, and Amex Ventures. This brings Cardless’ total equity funding to over $90 million, marking a significant milestone in the company’s rapid growth trajectory.
Impressive Growth Amid Industry Challenges
Despite economic pressures such as rising interest rates and inflation, Cardless has demonstrated remarkable resilience and growth, achieving more than 10x revenue growth since early 2023. The company’s Gross Transaction Value (GTV) tripled, and its Annual Recurring Revenue (ARR) quintupled in the past year. Additionally, Cardless has doubled its cardholder base in just six months, with premium co-branded cards averaging 20 transactions per month — a testament to strong customer engagement.
Strategic Use of New Funding
The latest investment will support several strategic initiatives:
- Product Development: Enhancing co-branded credit card and loyalty offerings.
- Talent Acquisition: Expanding engineering and operations teams.
- Market Expansion: Targeting major retail, e-commerce, and small-to-medium-sized businesses (SMBs).
Notably, Cardless stands out as the only fintech to power co-branded credit cards on the three largest global payment networks — Visa, Mastercard, and American Express. It is also among the few US fintechs offering Visa Infinite, the premium card variant.
High-Profile Partnerships and Global Expansion
Cardless has made significant strides in the co-branded credit card space, partnering with renowned brands like Qatar Airways and Alibaba. These collaborations enhance its global footprint, with the company now serving brands across four continents.
Key partnerships include:
- Airlines: Collaborations with Avianca, Qatar Airways (voted World’s Best Airline for the 8th time in 2024), LATAM, and TAP Air Portugal.
- Business and E-commerce: Launching a business credit card with Alibaba, tailored for SMBs.
Michael Spelfogel, Co-Founder and President of Cardless, emphasized the company’s unique approach: “We’ve designed products for some of the best brands globally. Our differentiated approach — from embedded servicing to data-driven personalized offers — delivers an unmatched co-branded card experience.”
Investor Confidence in Cardless’ Vision
Andrew Steele, Co-founder of Activant Capital, highlighted Cardless’ transformative role:
“Cardless is addressing a major gap in fintech by providing top-tier customer experiences for co-branded credit cards. They’ve built the only embedded platform capable of servicing both consumers and SMBs, launching cards with the world’s most sought-after brands.”
Future Prospects: Scaling Innovation and Growth
As Cardless continues to innovate, its focus on integrating AI-driven analytics, enhancing user experience, and expanding its premium offerings positions it as a leader in the co-branded credit card market. The company’s expansion into SMBs and e-commerce sectors further diversifies its portfolio, reinforcing its commitment to delivering cutting-edge financial solutions globally.
With robust funding and strategic partnerships, Cardless is set to redefine the future of co-branded credit cards, offering tailored, user-centric solutions that resonate with both brands and consumers.
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