Since rolling out in beta to a very limited waiting list in October, X1 has boasted to have become the fastest growing challenger credit card ever, on track to see $1 billion in annualized spending this year with a transaction occurring every five seconds.
Based on current and future income expectations rather than credit ratings, the Card X1 is described by the company to better set smart credit limits up to higher than traditional credit cards.
The startup recently raised $25 million in Series B funding, with applications for the credit card promised to open to the general public in the United States soon. Led by Google Analytics co-founder Wesley Chan’s new fund, FPV companiesthe round included investments from a number of celebrity investors, including a popular musical group.
Alex Pall and Drew Taggart, the musical artists behind the electronic duo chain smokersrecently shared more with Fortune of their decision to invest in the company.
Courtesy of X1
- start: X1
- Location: San Francisco
- Year of foundation: 2020
- Evaluation: Refused to disclose
- Investment level: Series B
- Number of employees: 30
- Other major investors: FPV Ventures, Spark Capital, SV Angel, Max Levchin, co-founder of Affirm and PayPal, David Sacks, founding COO of PayPal, Adam Bain, former COO of Twitter, Kevin Weil, Instagram Product Manager, Aaron Levie, CEO of Yelp, Jeremy, CEO of Yelp Stoppelman, Ali Rowghani, CEO of Y Combinator Continuity, and Ash Gupta, Former President of American Express
Courtesy of X1
Why they invested, in their own words
Through our venture capital firm Mantis VC, we’re always on the hunt for fintech’s next disruptive brand, and credit cards were overdue for a makeover. We’re always thinking about our fanbase and the kinds of businesses that would make their lives better, and X1 felt like the perfect opportunity to do just that. There just hasn’t been much innovation in the space since the launch of American Express’ Platinum Card in 1984.
With X1 Card, it was love at first sight. The branding – from the unboxing to the card to the app – is eye-catching and incredibly stylish. We are also founder-focused investors, and Deepak ticked all the boxes for us given his passion and enthusiasm for the business.
When you use the card, the experience continues to feel like magic; we were shocked once we started talking with X1 how many friends of ours already had the card. The rewards are unprecedented in the no-fee card industry, and the app makes it easy to redeem points at the places our fans love to shop like Apple, Nike, Amazon, Supreme, Peloton, Uber, and more. . A host of smart features support everything you could think of, like canceling trials, disputing purchases, creating new cards for family members, and more. The card redesigns the way limits are set by looking at income instead, allowing limits to be up to five times higher.
We know there are inherent risks, and it won’t be easy, but we’re excited to see how X1 can change the credit landscape. Not to mention that their waiting list of over 500,000 people is waiting for the card today. Given where they are and how little marketing has been done, that’s beyond impressive. X1 Card’s momentum is something we’ve never seen before.
This is an episode of Why I Invested, a series featuring famous investors from all different backgrounds and industries, revealing what inspired them to invest their own money in a new venture.