Fintech startup Kiwi has successfully raised $13 million in its latest funding round, led by Omidyar, to further develop its credit offerings on the Unified Payments Interface (UPI).
Launched in November 2022, Kiwi introduced a unique concept of “credit cards with UPI” by collaborating with banking institutions to issue digital RuPay Cards.
This recent investment comes after Kiwi’s previous funding round in May 2023, where it secured $6 million from investors like Nexus Venture Partners, Stellaris Venture Partners, and several angel investors.
According to the National Payments Corporation of India (NPCI), in October 2023, UPI transactions hit a record high with over 1,141 crore transactions, totaling a transaction value of INR 17.16 Lakh Cr.
Kiwi’s primary goal with the newly acquired funds is to expand its product range. It plans to introduce new offerings such as no-cost equated monthly installments (EMI) on UPI and initiate credit lines on UPI, leveraging the approval granted by the NPCI earlier this year. Kiwi has already partnered with Axis Bank and intends to collaborate with two more major banks within the next six months.
The platform’s all-in-one credit on UPI solution enables customers to access credit by issuing Rupay cards in alliance with banks. Users can easily manage their cards within the app, including blocking them, increasing limits, making payments, and earning rewards with each transaction.
As per the reports, the startup has issued 25,000 virtual credit cards. On average, users spend about Rs 22,000 monthly, with a notable 70-80 transactions per user each month.
With an ambitious vision, Kiwi aims to extend access to credit on UPI to 500,000 users by 2024, marking a significant milestone for the innovative fintech firm.