Credit card management solutions startup Kiwi has secured $13 Mn (INR 108 Cr) as a part of its Series A funding round led by Omidyar Network India.
The round also saw participation from existing investors such as Nexus Venture Partners and Stellaris Venture Partners.
Bengaluru-based Kiwi plans to deploy the fresh proceeds to scale up its ‘credit cards on UPI’ offerings across the country.
Earlier in May 2023, Kiwi raised $6 Mn in a funding round from a clutch of investors, including Nexus Venture Partners, Stellaris Venture Partners, and other angel backers.
Kiwa was founded in November 2022 by Siddharth Mehta (formerly CEO of Freecharge), Mohit Bedi (previously associated with Axis Bank and PayU), and Anup Agrawal (former business head at LazyPay).
It launched “credit cards with UPI” by issuing digital RuPay Cards in tandem with banking institutions. Its mobile application empowers users to execute secure payments, utilising either a credit card or a bank account directly through their smartphones.
As a licensed UPI third-party app (‘TPAP’), certified by NPCI, Kiwi presently boasts a portfolio of 25,000 issued credit cards and aspires to onboard 5 Lakh customers by the end of 2024. In collaboration with Axis Bank, the startup intends to forge partnerships with two major banks within the ensuing six months.
“The unique UPI user base, numbering 8-10 times that of existing credit card users in India, coupled with the estimated 35 times larger acceptance points for ‘Credit on UPI’ compared to regular credit cards, underscores the substantial growth potential for Kiwi,” the company said in a statement.
Agrawal is optimistic that the newly acquired funds will facilitate Kiwi’s further development of services and the introduction of innovative products during the next phase of product development and growth.
“Increasing access to affordable and convenient financial products beyond digital payments and ensuring deeper and more consistent usage of formal credit is the critical next step in advancing the financial inclusion journey of India’s next half billion,” said Treasa Mathew, Director at Omidyar Network India.
In October 2023, UPI recorded over 1,141 crore transactions, amounting to a transaction value of INR 17.16 Lakh Cr, as per data from the National Payments Corporation of India (NPCI).
On a month-on-month basis, transactions exhibited an 8% rise from 1,056 crore in September, while the transaction value experienced an 8.6% growth from INR 15.8 Lakh Cr. On a year-on-year basis, UPI achieved a 55% increase in transaction volume and a 42% growth in transaction value.
NPCI has set its sights on achieving 100 billion monthly transactions in the near future, underscoring its ambitious growth plans. UPI has also expanded its reach globally, venturing into countries such as France, Bhutan, Nepal, the UAE, and Canada.
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