OneCard is set to be the 104th unicorn of India since it plans to raise $100 million in funding
- ByStartupStory | July 4, 2022
OneCard, a mobile-first credit card firm, is on track to become India’s 104th unicorn and the 19th of the current calendar year (2022). The credit card rival is gathering $100 million in a fresh fundraising round from investors both new and old.
Temasek and Singaporean sovereign fund GIC along with other current investors are contributing $100 million at a post-money valuation of $1.2 billion. The second fundraising round in the previous six months would be this one. The firm, which is managed by FPL Technologies, was valued at $722 million after raising $76 million in a Series C financing that was headed by QED Fund.
Discussions have been ongoing for a while, but GIC and Temasek just provided a term sheet last month. The agreement will reportedly be disclosed in the upcoming weeks, per sources. For the uninitiated, OneCard provides a virtual, cellphone-based card to first-time credit card customers in order to establish credit. For purchases of Rs 3,000 and more, it also offers an EMI option with an interest rate of 1.33% and a payback period of 3–24 months.
OneCard‘s Series D round comes at a time when the future of BNPL platforms is uncertain in the wake of an RBI directive that prohibits issuers of prepaid payment instruments from providing non-bank credit lines. The business, as well as its rivals Slice, Uni, Fi, and others, are occupied with determining their future steps.
In partnership with institutions including IDFC First Bank, SBM Bank, South Indian Bank, Federal Bank, and Bank of Baroda Financial, OneCard provides credit cards. More than 600,000 people utilise it nationwide at the moment.
In addition to OneCard, FPL also offers OneScore, a credit score tracking and management software. According to the company, the app has close to 70 million users. OneCard, Temasek, and GIC did not immediately respond to inquiries. When they reply, we’ll update this post.
Follow Startup Story
Related Posts
