E-Commerce Credit Card Provider Tandym Launches With $60M Raise
The feeling of getting one’s first branded credit card is hard to forget. More times than not a branded credit card is an aesthetically-driven desire that not only reflects a shopper’s personality but one of their favorite stores, too. However, for up-and-coming e-commerce brands, the ability to offer consumers a line of credit is rare.
Tandym is a fintech platform working to change that. Chicago-based Tandym partners with e-commerce brands that make under $1 billion in revenue and helps businesses offer lines of credit to their customers.
On Tuesday, the startup officially launched its platform with $60 million in seed funding from Gradient Ventures, Google’s AI-focused venture fund. The seed funding is made up of $10 million in equity while the remaining $50 million is in debt financing.
“Gradient also invested in our pre-seed round and they have been fantastic partners to work with. They are strategic, thoughtful and act as true partners,” Jennifer Glaspie-Lundstrom, CEO and co-founder of Tandym, told Built In via email. “We’ve been uniquely impressed by the operating resources that they bring to bear.”
With the raise, Tandym plans to increase brand awareness and hire an additional 10 people to its current 14-person team.
Some of Tandym’s e-commerce partners include medically-formulated skin care line Jennifer Bradley Cosmetics, structured water device company The Wellness Enterprise and PerioSciences, which offers a line of antioxidant-infused dental rinses and gel products.
“Tandym democratizes access to private label card programs — which were previously only available for the nation’s largest retailers. This enables merchants, of any size, to save money and grow their businesses,” Glaspie-Lundstrom said. “Tandym essentially redistributes wealth back to and empowers merchants via their own loyalty programs, allowing them to deepen their connections to the consumers they serve.”