Jaja Finance’s 15% debt cost pushes Asda card business into loss

Jaja Finance, the fintech that runs the Asda supermarket credit card, has tapped a new debt facility for almost £50 million at an annual 15 percent interest rate. The borrowing sits on top of a £42 million draw from a £100 million facility taken last year, and has helped push the company’s pre‑tax loss for the 2025 financial year to £35.8 million, despite a modest 6 percent rise in revenue to £12.4 million.

Debt surge and loss figures

The fresh borrowing means the firm now pays more in interest than the total turnover it generated in the year. Management attributes the widening loss to continued investment in operational infrastructure, customer acquisition and the cost of servicing an expanding cardholder base.

"The company is in the scale‑up phase and has incurred losses since inception. It has been reliant historically on investment from its parent company… to meet its short‑term working capital and long‑term capital needs as well as to meet its other obligations including FCA capital adequacy requirements," the firm said in a statement.

To shore up cash, Jaja also secured an additional £42 million of equity from shareholders during the year, earmarked for operational activities.

Why the cost of capital matters

The steep interest rate reflects the market’s view of Jaja’s risk profile. The company’s parent, Ray Fintech, rebranded from Phantom Investments in 2024 after political criticism, relies on wholesale funding raised via the Guernsey‑based International Stock Exchange and managed by Pana Finance. A failed refinancing attempt under the “Falcon Master Trust” umbrella has forced the firm to launch a new plan called “Project Ulysses” to gain more flexibility in sourcing funds.

Ownership of Jaja traces back to the billionaire Issa brothers, who acquired a majority stake alongside TDR in 2021 after the supermarket chain was bought from Walmart. The brothers’ involvement gave the fintech a high‑profile backer, but share values on private‑market platform Republic have slumped more than 90 percent since their peak.

Future financing outlook

With interest costs now eclipsing its entire revenue stream, Jaja will need to secure cheaper capital or dramatically improve its earnings to stay solvent. The “Project Ulysses” initiative aims to diversify funding sources, but analysts warn that without a clear path to profitability, the firm may face further equity dilution or a restructuring of its relationship with Asda.

Helen Selby, Asda’s company secretary, dismissed concerns over the parent’s former name, saying, "I see it as a word. I don’t look beyond it. I wouldn’t not choose it."

For now, the Asda credit‑card partnership remains intact, but the financial strain on Jaja could translate into tighter credit limits or higher fees for shoppers, echoing broader challenges faced by fintechs that rely heavily on expensive wholesale debt.

Read more about how regulatory pressures are reshaping financial‑services firms in this analysis of compliance trends.