Uni Cards, a Fintech Startup, Acquires P2P Lending Platform OHMY Technologies
- ByStartupStory | April 13, 2023
Uni Cards, a Buy-Now-Pay-Later (BNPL) startup, acquires OHMY Technologies (OMLP2P), a peer-to-peer lending platform licensed by the Reserve Bank of India (RBI). Founders of Uni Cards, Nitin Gupta, Laxmikant Vyas, and Prateek Jindal, join the board of OMLP2P as directors on January 7, according to reports.
The estimated INR 3-4 Cr acquisition of OHMY Technologies (OMLP2P) by Uni Cards, a Bengaluru-based Buy-Now-Pay-Later (BNPL) startup, is pending RBI approval. OMLP2P reported INR 33 Lakh in revenue from operations but incurred an INR 1 Cr loss in FY22. Uni Cards, founded in 2020 by Nitin Gupta, Prateek Jindal, and Laxmikant Vyas, aims to provide unique credit products to customers.
Uni Cards, a fintech startup, faced challenges in its business model last year after the Reserve Bank of India (RBI) prohibited non-bank prepaid payment instrument (PPIs) issuers from loading PPIs with credit lines in June. As a result, Uni Cards had to suspend card services for its products, Uni Pay 1/3rd Card and Uni Pay 1/2 Card. However, the startup ensured that customers would still have access to their credit line through Uni Cash, which was designed to cater to urgent needs such as fee payments, medical bills, and emergencies, as stated in their previous statement.
Uni Cards successfully raised INR 50 Cr through debt financing from venture debt company Stride Ventures in the previous year. In December 2021, the startup also secured $70 Mn in its Series A funding round, valuing the company at $350 Mn. Uni Cards’ acquisition of OHMY Technologies (OMLP2P) has been in progress prior to the implementation of new guidelines in June 2022, as stated by Nitin Gupta, one of the founders. This acquisition is a crucial part of Uni Cards’ strategic plan.
Digital lending apps have faced increased scrutiny from the government in recent times. In January, the government banned 232 online betting apps and loan apps, including several Indian platforms. However, some of these apps were later unblocked by the government. In addition, tech giant Google has tightened its policy for these apps on the Play Store, requiring them to comply with stricter guidelines starting May 31. These guidelines include declaring if they are not directly involved in money lending activities and instead serve as platforms for registered Non-Banking Financial Companies (NBFCs) or banks. According to a report by Inc42, India’s digital lending market is projected to reach $1.3 Tn by 2030, with a compound annual growth rate (CAGR) of 22% from 2022 to 2030. Furthermore, digital lending is expected to account for 60% of the total Indian fintech market by 2030.
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