Indian fintech firm Kiwi secured $13 million in Series A funding, emphasizing its commitment to revolutionizing credit on UPI through strategic partnerships like the one with Axis Bank, marking a pivotal moment in the digital finance landscape in India.
The funding led by Omidyar Network India will fuel Kiwi’s expansion efforts as it continues to revolutionize credit card management on the Unified Payments Interface (UPI) platform.
“We are looking to develop our product and offerings further, expand brand partnerships and credit card on UPI offerings. We will also be looking at adding more talent,” said Anup Agrawal, co-founder of Kiwi.
Kiwi, founded in 2023 by industry veterans Siddharth Mehta, Mohit Bedi, and Anup Agrawal, has positioned itself as a pioneer in offering credit cards with UPI’ in collaboration with banks. The Mumbai-based startup plans to leverage the funding to enhance its product and technology, focusing on hiring senior leaders in growth, marketing, and data analytics.
Strategic Partnerships
Kiwi has strategically partnered with Axis Bank and aims to forge additional alliances in the coming year. This is particularly crucial in light of the Reserve Bank of India’s cautionary stance on unsecured lending, emphasizing the need for secure partnerships with banks to underwrite credit.
“What RBI has done in the last week is coming from a prudence perspective, and they want to make sure that there is no overleveraged in the market. It is, in fact, a good and preventive step. However, India is a credit-starved market, and there is Opportunity for players like Kiwi,” said Agrawal.
“This presents significant growth potential for Kiwi. Kiwi plans to onboard 1 million customers by CY 2024,” He added.
With a minimum credit limit of INR 25,000 and reaching up to INR 10,00,000, Kiwi has attracted over 5 lakh registered consumers and issued cards to over 25,000 users. The platform’s innovative approach aligns with the growing credit trend on UPI, boasting acceptance points estimated to be thirty-five times larger than traditional credit card acceptance points.
Expanding Product Portfolio
Kiwi’s success in securing this funding comes on the heels of its earlier funding round in May, where it raised $6 million from Nexus Venture Partners, Stellaris Venture Partners, and angel investors. The fintech firm plans to diversify its product offerings, including introducing no-cost equated monthly installments (EMI) and credit lines on UPI in collaboration with the National Payments Corporation of India (NPCI).
Looking ahead, Kiwi aims to reach a target of providing access to credit on UPI for 500,000 users by 2024. The company’s commitment to innovation and strategic partnerships positions it as a frontrunner in India’s dynamic digital finance landscape.
“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,” said Treasa Mathew, Director – Investments, Omidyar Network India, in a media statement.
Kiwi’s latest funding milestone underscores investors’ confidence in its groundbreaking approach to credit card management on the UPI platform. As the company continues to enhance its offerings and expand its user base, it remains a key player in shaping the future of fintech in India.
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