Alteria invests Rs 95 crore in OneCard through debt funding
- ByStartupStory | January 5, 2024
Mobile-first credit card startup OneCard has secured Rs 95 crore or $11.44 million in debt funding from Alteria Capital, marking its second round of such funding recently.
According to regulatory filings, OneCard’s board approved the issuance of 9,500 Series B debentures priced at Rs 1,00,000 each to raise the specified amount. The debentures have a 30-month tenure with an interest rate of 13.85% per annum, as per the securities subscription agreement.
“The debt funding will be used for our business operations,” stated the filings.
FPL Technologies, operating as OneCard, focuses on providing co-branded credit to primarily first-time users. It also offers the OneScore app, enabling credit score tracking and management.
The company collaborates with banks like IDFC First Bank, Federal Bank, SBM Bank, and recently, Indian Bank to empower users with digital credit card control.
“In 2022, we became a unicorn after a Series D round led by Temasek,” confirmed sources. Talks were underway for another funding round of $100 million at a flat valuation.
Peak XV holds the largest stake in OneCard at 23.27%, followed by Matrix Partners and QED Holdings. Co-founders Anurag Sinha, Vaibhav Hathi, and Rupesh Kumar collectively own 30% of the company.
“OneCard experienced remarkable growth in the last fiscal year, witnessing a 6.4X surge in revenue to Rs 541 crore,” reported sources. However, the company also faced a 2.23X increase in losses, reaching Rs 406 crore by the end of March 2023.
The market for co-branded credit cards sees competition from companies like Slice backed by Tiger Global and Uni supported by Accel, all vying for partnerships with banks.
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