Source: Jaja Finance
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.