Indian fintech startup Kiwi has announced raising $13 million in a Series A funding round anchored by Omidyar Network India.
The round, which followed the startup’s $6 million funding, was also backed by existing investors Nexus Venture Partners and Stellaris Venture Partners.
Founded in November 2022, Kiwi has positioned itself as one of the key players in India’s fintech landscape by launching the first-ever “credit cards with UPI” in the country.
This offering is a result of Kiwi’s collaboration with banks to issue digital RuPay cards, according to the announcement.
The integration of credit cards with the Unified Payments Interface (UPI) is a significant innovation in the Indian financial sector, reflecting Kiwi’s commitment to enhancing the convenience and efficiency of financial transactions.
The company also claims that its mobile application stands out by allowing users to make payments using either their credit cards or directly from their bank accounts through their smartphones.
This versatility in payment options caters to the diverse needs of consumers, providing a seamless and user-friendly payment experience.
As a licensed UPI third-party application by the National Payments Corporation of India (NPCI), Kiwi said it has demonstrated compliance with the highest standards of financial regulations, ensuring secure and reliable services to its users.
Per the announcement, Kiwi will use the fresh capital to expand its offerings in the Indian market, beefing up its position as one India’s key fintech solutions provider.
Currently, Kiwi has issued 25,000 credit cards and aims to on-board 5 lakh customers by end of 2024. It has partnered with Axis Bank and plans to collaborate with two large banks in the next six months.
The number of unique UPI users is 8-10 times the number of existing credit card users in India, and the acceptance points for ‘Credit on UPI’ are estimated to be 35x larger than regular credit card acceptance points, the startup claimed.
