Kiwi Nets INR 209 Cr To Make UPI-Linked Credit Cards Mainstream

Fintech Startup Kiwi Bags $6 Mn To Offer Credit On UPI Service

SUMMARY

Kiwi has secured INR 208.5 Cr (about $24 Mn) in its Series B round led by Vertex Ventures

The round also saw participation from Nexus Ventures, Stellaris Venture Partners and Omidyar Network (ON)

The fresh capital injection comes nearly two years after it raised $13 Mn in its Series A round, in November 2023, led by Omidyar Network India

Updated | August 25, 1:10 PM

Days after Inc42 reported Kiwi securing INR 208.5 Cr (around $24 Mn) in its Series B funding round led by Vertex Ventures, the startup has now confirmed the development.

In a statement, the startup said it plans to deploy the fresh proceeds to boost its growth, advance product roadmap and sharpen its focus on building sustainable unit economics.

Original | August 20, 11:50 AM

Fintech startup Kiwi has secured INR 208.5 Cr (about $24 Mn) in its Series B round led by Vertex Ventures. The round also saw participation from Nexus Ventures, Stellaris Venture Partners and Omidyar Network (ON).

As per its regulatory filings with the MCA, Vertex Ventures SEA Fund V Pte Ltd. invested INR 113.2 Cr in the startup, while Nexus Ventures VI Holdings LLC and Stellaris Venture Partners India Trust II pumped in INR 47.5 Cr and INR 34.9 Cr, respectively. ON Mauritius II also infused INR 12.8 Cr in the company during the round.

In total, Kiwi allotted 20,251 Series B CCPS shares to these investors. Inc42 has reached out to the company and the story will be updated based on the responses.

Founded in 2022 by Siddharth Mehta, Mohit Bedi and Anup Agrawal, Kiwi operates at the intersection of credit cards and UPI payments. The fintech startup issues digital RuPay credit cards, in partnership with Axis Bank, which can be linked by users with their UPI accounts to make digital payments.

Kiwi, which is a licenced UPI third-party app provider (TPAP), claims to have so far processed 5.8 Lakh merchant transactions in more than 586 Indian cities.

The fresh capital injection comes nearly two years after it raised $13 Mn in its Series A round, in November 2023, led by Omidyar Network India, with participation from Nexus and Stellaris. It also raised $6 Mn in seed funding in May 2023.

Including the latest funding round, Kiwi has raised a total funding of about $43 Mn to date.

The development comes at a time when credit cards, bundled with UPI, are witnessing healthy traction among the urban milieu.

Earlier this year, payments body NPCI MD and CEO Dilip Asbe said that almost 16% of all credit card spending in India took place on the RuPay network. Nearly half of these credit card transactions, as per Asbe, were routed via UPI.

A key reason behind this rise has been the growing UPI adoption, rising internet and smartphone penetration and a booming Indian fintech market, which is projected to become a $2.1 Tn opportunity by 2030.

As a result, a new wave of startups have emerged in the last few years to capitalise on the growing number of users opting for UPI-linked credit cards. Last month, Zaggle acquired Rio.Money to expand into the consumer credit card market.