Fintech Startup Kiwi Gears Up for Expansion with $13 Million Funding Led by Omidyar Network India
Kiwi, a fintech startup, has made headlines by securing $13 million as a part of its latest funding round led by Omidyar Network India, with participation from existing investors Nexus Venture Partners and Stellaris Venture Partners.
As per the startup, the freshly raised funds will enable it to launch newer products over the next year. This includes no-cost EMI on UPI and starting credit line on UPI, allowed by the National Payments Corporation of India (NPCI) earlier this year.
This transaction marks the second institutional fundraise for the fintech startup.
Kiwi | Pay With Credit, Scan With Kiwi
Founded by Siddharth Mehta, Mohit Bedi, and Anup Agrawal in 2022, Kiwi is a fintech startup that issues virtual RuPay credit cards to users in partnership with Axis Bank, allowing them to link the card to the Unified Payments Interface (UPI) service on its app, and eventually enabling them to make digital payments.
Speaking about the development, Siddharth Mehta, Co-founder of Kiwi, highlighted the launch of the (RuPay credit card on UPI) product, which witnessed a good product market fit.
“With this round, we now look to scale up our marketing efforts, double down on tech architecture, and keep improving customer experience. We will make some senior appointments in this direction.”
The startup claims to have issued 25,000 virtual credit cards since its launch, with an average monthly spending of about Rs 22,000 per user. With its users currently making at least 17-18 transactions per month, the startup highlighted that for every transaction made through the virtual Axis Bank Kwik RuPay Card, Kiwi provides redeemable points as cashback in the customer’s bank account.
Statement from the Investors
Commenting on the development, Treasa Mathew, Director of Investments, Omidyar Network India, shared his excitement to lead this investment in Kiwi.
“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.”
Mehta added that most of its customers presently are salaried and from the top eight cities in India. In the next six months, the fintech startup will partner with two new banks for virtual RuPay cards and plans to expand the service to new users, including in tier 2 and 3 cities.
With aggressive growth targets in mind, Kiwi aims to target 500,000 virtual credit cards over the next 12 months.
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