Kiwi, a fintech startup, has successfully raised $13 million in a Series A funding round. The round was led by Omidyar Network India, with active participation from existing investors Nexus Venture Partners and Stellaris Venture Partners.
Kiwi, founded in November 2022, is known for its pioneering ‘credit cards on UPI’ concept in India. This unique approach, developed by a team led by former Freecharge CEO Siddharth Mehta, former Axis Bank and PayU official Mohit Bedi, and Anup Agrawal, former business head at PayU’s Lazypay unit, represents a first in the fintech industry. The company has collaborated with banks to issue digital RuPay Cards, marking a significant step in integrating credit facilities with the popular UPI (Unified Payments Interface) system.
Before this major funding achievement, Kiwi had secured $6 million from Nexus Venture Partners, Stellaris Venture Partners, and a group of angel investors. With NPCI certification as a licensed UPI third-party app (TPAP), the company has been making strides in the financial technology sector.
Currently, Kiwi has issued 25,000 credit cards and has set an ambitious target to onboard 5 lakh customers by the end of 2024. The startup’s strategy includes collaborations with major financial institutions like Axis Bank and plans to partner with two more large banks in the upcoming six months.
The potential market for Kiwi’s services is vast, considering the number of UPI users in India is 8-10 times the number of credit card users. Furthermore, the startup estimates that the acceptance points for ‘Credit on UPI’ could be 35 times larger than those for regular credit cards.
Anup Agrawal, co-founder and CEO of Kiwi, expressed excitement about the UPI Credit Card concept, emphasizing that the new funding would enable the company to enhance its services and introduce innovative products. Treasa Mathew, Director at Omidyar Network India, commended Kiwi’s efforts, noting the startup’s role in advancing financial inclusion in India. She expressed confidence in Kiwi’s ability to transform financial accessibility with its solutions, supporting the startup’s journey as it continues to innovate and expand its reach.