Fintech startup Kiwi raises $13mn in Series A led by Omidyar

New Delhi: Fintech startup Kiwi has raised $13 million in a Series-A funding round led by Omidyar Network India.

Existing investors, Nexus Venture Partners and Stellaris Venture Partners also participated in this round.

According to the company, this funding will enable Kiwi to further expand its ‘credit cards on UPI’ offerings in India.

Kiwi was founded in November 2022 by former Freecharge CEO Siddharth Mehta, former Axis Bank and PayU official Mohit Bedi, and Anup Agrawal, who was former business head at PayU's Lazypay unit. It was the first fintech to launch 'credit cards with UPI' by issuing digital RuPay Cards in collaboration with banks.

Certified by NPCI as a licensed UPI third-party app (TPAP), Kiwi had previously secured $6 million in funding from Nexus Venture Partners, Stellaris Venture Partners, and a group of angel investors.

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.

"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," Anup Agrawal, co-founder and CEO of Kiwi, said on the fundraise.

Treasa Mathew, Director, Omidyar Network India said, "Increasing access to affordable and convenient financial products beyond digital payments and ensuring deeper and more consistent usage of formal credit is the critical next step in advancing the financial inclusion journey of India’s Next Half Billion. 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."