One Card funding: OneCard secures $25.5 million from QED Investors, BTV, Peak XV Partners and Z47

Pune-based FPL Technologies, which runs credit card management and digital payments platform OneCard, has secured around $25.5 million in a fresh funding round led by QED Investors. Peak XV Partners, Z47 (previously Matrix Partners India) and Better Tomorrow Ventures also participated in the round.Armed with the fresh funds, FPL Technologies said it will strengthen its technology infrastructure and invest in the development of new products by collaborating closely with regulated entities like banks.

FPL Technologies, which was founded in 2019 by former senior ICICI Bank executives Anurag Sinha, Vibhav Hathi and Rupesh Kumar, has raised $262 million in equity funding over multiple funding rounds. The startup was last valued at around $1.3 billion.

“With this funding, we are focused on scaling our offerings and deepening our partnerships as we work towards reshaping how credit is delivered and experienced and creating a deeper impact in the financial ecosystem by driving greater inclusion and accessibility,” Anurag Sinha, cofounder, FPL Technologies, said in a statement to ET.

ET had written on November 25 that OneCard was in the process of raising around $25 million in funding. According to its filings with the ministry of corporate affairs, Rs 71.4 crore has already been secured by the company. Better Tomorrow Ventures has pumped in Rs 42 crore, Peak XV has invested Rs 8.4 crore and Z47 has invested around Rs 21 crore into the company.

OneCard manages cobranded credit card programmes with banks like South Indian Bank, CSB, Federal Bank and BOB Card, which is backed by Bank of Baroda.

OneCard targets the premium segment of Indian consumers with its metal cards armed with superior features for its consumers and better deals.The credit card sector, while growing at a rapid pace, has also faced regulatory actions, with the Reserve Bank of India passing strict instructions around data sharing between banks and their technology partners engaged in this business. Despite RBI actions, some of the most successful credit card programmes in the country have been built on cobranding arrangements like Amazon ICICI Bank, Flipkart Axis Bank and Tata Neu-HDFC Bank partnerships.

“We have been an existing investor with FPL for the past four years and have been consistently impressed by their exceptional execution across technology development, product innovation and service delivery,” said Sandeep Patil, head of Asia for QED Investors. Patil added that despite the rapid advancement in technology by financial services companies, the industry is under-penetrated and there is enough scope for innovation.