London-based TreeCard is a payment card that reforests each time you spend. The new Monzo and Revolut rival is known as the world’s first wooden MasterCard payment card.
Funding led by EQT Ventures
Now, TreeCard just announced that it bagged $5.12M (nearly £3.62M) seed funding. The round was led by EQT Ventures along with participation from Seedcamp and Episode 1 and angel investors – Matt Robinson (the founder of GoCardless) and Charlie Delingpole (founder of ComplyAdvantage). The London fintech will use the investment to hire fintech talent, expand into the US and key European markets and support product rollout in the UK.
Jamie Cox, CEO and Co-Founder commented: “We wanted to create a financial product with a difference, one that was far removed from greenwashing and allowed customers to improve the impact of their spending without drastically changing their habits. We’re really excited to be backed by EQT Ventures; it was clear throughout the fundraising process that the team really understood and resonated with our mission. As a multi-stage fund, EQT Ventures’ presence across both Europe and the US provides the perfect springboard for us to launch into international markets”.
Tom Mendoza, Deal Partner at EQT Ventures who led the investment added: “TreeCard has the potential to become a leading green finance brand, going where no brand has gone before in creating a de facto platform for impactful financial management. At EQT Ventures, we’re increasingly aware of the environment and the impact that our investments have on the world around us, so we’re really excited to support the TreeCard team, who are actively working with the financial system to create a better future for the planet”.
Solution to tackle climate emergency
As sustainability is being increasingly prioritised everywhere, consumers direct the economy through spending. Last year, it was reported that ethical consumer spending and finance in the UK reached a record of £98B. TreeCard lets consumers place an active role in tackling the climate emergency via their everyday spending sans any tedious processes. This way, consumers can create a positive and long-lasting impact.
Founded in August 2020 by 23-year-old Jamie Cox (CEO and co-founder), alongside James Dugan (CMO and co-founder) and Gary Wu (co-founder and CTO), the idea for the company was initially discussed over the kitchen table with Jamie’s mum. Having founded Cashew, a Venmo for the UK that achieved 20% WoW growth, Jamie was hungry for another fintech opportunity with higher impact. TreeCard, as a complementary product to Ecosia, presents a responsible alternative to everyday banking services.
How does TreeCard work?
TreeCard links with current bank accounts, making it easy and convenient for users to integrate the payment card into their usual spending habits. The wooden card is completely free and regular purchases contribute to tree planting projects by Ecosia, the green search engine. At least 80% of profits are directed towards reforestation projects in 26 countries around the world. What’s interesting is that TreeCard has grown organically with over 140,000 people waiting for the launch of the card slated to happen in the next few months.
TreeCard generates money from the interchange charge and operates similar to Amex, which gives a huge percentage of profits back to consumers as cashback rewards. Instead of funnelling money back to the customer, TreeCard invests 80% of profits into sustainable causes such as reforestation in partnership with Ecosia. In the last 10 years, Ecosia has planted over 119 million trees all over the world.
The post UK fintech TreeCard rivals Monzo with world’s first wooden debit card, raises £3.62M funding appeared first on UKTN (UK Tech News).
