Cardless, an embedded credit card platform, has successfully raised $30m in growth equity funding.
According to Finextra, this funding marks a significant milestone, underpinned by a tenfold increase in revenue since the beginning of 2023. Cardless specializes in creating co-branded credit cards for major brands, seamlessly integrated across the three largest card networks: Visa, Mastercard, and American Express.
The recent financial infusion was spearheaded by Activant Capital, with contributions from both new and existing investors, including Mischief (the fund co-founded by Plaid’s Zach Perret), Industry Ventures, Thayer Ventures, Assurant, and American Express. This latest round brings the total equity funding for Cardless to over $90m.
Cardless has carved out a niche in the FinTech industry by offering tailor-made products for some of the world’s premier brands, such as Qatar Airways and Alibaba. “Over the last 12 months we’ve been able to design products for some of the best brands in the world, including Qatar Airways and Alibaba,” Michael Spelfogel, co-founder and president of Cardless, noted. He highlighted the platform’s unique approach, from embedded servicing to leveraging brand data for personalized sign-up offers, which sets Cardless apart from traditional banks and other FinTech competitors.
The funds from this round will be allocated towards assembling a world-class team to expand both new and existing programs. Spelfogel revealed that cardholder numbers have doubled in the past six months, with its premium co-branded cards averaging nearly 20 transactions per month—a testament to the strong top-of-wallet behavior.
“Cardless is attacking one of the largest markets in FinTech that has historically been woefully underserved,” said Andrew Steele, co-founder of Activant Capital. Steele praised Cardless for challenging the industry and delivering products that meet the high standards of global brands, positioning the company as a unique player capable of servicing both consumers and SMBs.
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