A London FinTech start-up which reinvests 80% of its profits into reforestation projects has raised £3.7 million.
TreeCard, which has generated publicity through its wooden Mastercard, has organically grown a waitlist of 140,000 people ahead of launch in the coming months.
The new funding, led by EQT Ventures, will be used to support its UK rollout and expand into the US and European markets.
The round saw participation from Seedcamp and Episode 1, alongside angel investors including GoCardless founder Matt Robinson and ComplyAdvantage founder Charlie Delingpole.
TreeCard links with current bank accounts, making it easy and convenient for users to integrate it into their usual spending habits. The card is completely free to customers and regular purchases contribute to tree planting projects by Ecosia, the green search engine.
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Founded in August 2020 by 23–year-old CEO Jamie Cox, CMO James Dugan and CTO Gary Wu, TreeCard makes money from the interchange charge and operates in a similar way to Amex, which gives a huge percentage of profits back to consumers in cashback rewards.
Instead of funnelling money back to the customer, TreeCard invests 80% of profits into sustainable causes, including reforestation in partnership with Ecosia. Over the last 10 years, Ecosia has planted more than 119 million trees all over the world.
“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,” said Cox.
“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, said: “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.”