Kiwi, Pioneering Credit Cards with UPI, Secures $13 Million in Pre-Series A Funding Led by Omidyar Network India

• ByStartupStory     |    November 21, 2023

Fintech startup Kiwi, specializing in credit card management, has successfully raised $13 million in its pre-Series A funding round, with Omidyar Network India leading the investment. Existing investors, including Nexus Venture Partners and Stellaris Venture Partners, also participated in this funding round.

The Bengaluru-based company, founded earlier this year by fintech industry veterans Siddharth Mehta, Mohit Bedi, and Anup Agrawal, aims to utilize the funds to further develop its product and technology. Kiwi also plans to expand its team by hiring senior leaders in growth, marketing, and data analytics. Currently employing 40 staff members, the company has set its sights on enhancing brand partnerships and extending its credit card offerings on the Unified Payments Interface (UPI).

Kiwi stands out as the first fintech company in India to introduce ‘credit cards with UPI,’ issuing digital RuPay Cards in collaboration with banks. The firm received certification from the National Payments Corporation of India as a licensed UPI third-party app (‘TPAP’).

In a conversation with Moneycontrol, Anup Agrawal, co-founder of Kiwi, emphasized the company’s commitment to developing its product offerings, expanding brand partnerships, and venturing into credit card offerings on UPI. Agrawal sees an opportunity for growth despite recent cautionary moves by the Reserve Bank of India (RBI) regarding unsecured lending. He highlighted that while prudence is crucial, India remains a credit-starved market, presenting opportunities for players like Kiwi.

Kiwi has already partnered with Axis Bank and is actively seeking additional collaborations in the coming year. With an eligibility criterion starting at a monthly salary of INR 15,000, the platform predominantly caters to users with salaries exceeding INR 50,000. The minimum credit limit on the card ranges from INR 25,000 to INR 10,00,000.

An optimistic Agrawal shared Kiwi’s plans to onboard one million customers by the end of 2024. Currently boasting over 5 lakh registered consumers and having disbursed cards to more than 30,000 users, the startup anticipates reaching Rs 100 crore of Gross Merchandise Value (GMV) in November. On Kiwi’s platform, the average monthly spend on credit cards has been ₹22,000, with approximately 17-18 card transactions per month.

Treasa Mathew, Director – Investments at Omidyar Network India, expressed confidence in Kiwi’s solutions and excitement to support the team’s innovation and expansion in the dynamic Indian fintech landscape. The successful funding round positions Kiwi for further growth and profitability on its path to becoming a prominent player in the credit card management space.

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