Kiwi, the fintech startup focused on credit card management, has successfully raised $13 million in its pre-Series A funding round. The investment was led by Omidyar Network India, with participation from existing investors Nexus Venture Partners and Stellaris Venture Partners. This funding injection will propel Kiwi’s expansion plans, particularly in enhancing its credit cards on UPI offerings.
Founded in November 2022 by Siddharth Mehta, former CEO of Freecharge, Mohit Bedi, a former official at Axis Bank and PayU, and Anup Agrawal, former business head at PayU’s Lazypay unit, Kiwi has quickly made a mark in the fintech space. The startup achieved a significant milestone by becoming the first fintech to launch ‘credit cards with UPI,’ issuing digital RuPay Cards in collaboration with banks. Certified by the National Payments Corporation of India (NPCI) as a licensed UPI third-party app (TPAP), Kiwi previously secured $6 million in funding from Nexus Venture Partners, Stellaris Venture Partners, and a group of angel investors.
The fintech company, headquartered in Bengaluru, currently employs 40 staff members and plans to strategically utilize the fresh funding to further develop its product and technology. Kiwi also aims to enhance its team by hiring senior leaders in areas such as growth, marketing, and data analytics.
One of Kiwi’s notable achievements has been the issuance of 25,000 credit cards, and it sets an ambitious target of onboarding 500,000 customers by the end of 2024. With strategic partnerships already established, such as the collaboration with Axis Bank, Kiwi plans to extend its reach by collaborating with two more large banks within the next six months.
The company’s focus on the UPI space is strategic, given the significant potential it offers. The number of unique UPI users in India is estimated to be 8-10 times larger than the number of existing credit card users. Moreover, the acceptance points for ‘Credit on UPI’ are expected to be 35 times larger than regular credit card acceptance points, providing a substantial market opportunity for Kiwi.
“We have been big believers in UPI Credit Card from the start, and seeing it take shape is amazing. The funds will enable us to further develop our services and offer innovative products to our customers as we enter the next phase of product development and growth,” commented Anup Agrawal, Co-founder and CEO of Kiwi, on the successful fundraise. He expressed confidence in Kiwi’s positive trajectory and emphasized the startup’s commitment to achieving growth and profitability in the near future.
Treasa Mathew, Director – Investments at Omidyar Network India, also shared optimism about Kiwi’s potential, stating, “We believe in the transformative power of Kiwi’s solutions and are excited to back the team as they continue to innovate and expand their footprint. We look forward to a successful partnership and supporting the continued growth of Kiwi in the dynamic Indian fintech landscape.”
In conclusion, Kiwi’s successful pre-Series A funding round not only highlights investor confidence in the fintech startup but also positions it strategically to capitalize on the growing opportunities in the credit card and UPI space in India. With a strong focus on product innovation, partnerships, and customer acquisition, Kiwi aims to play a significant role in shaping the future of credit card management in the Indian fintech landscape.