In a landmark development for India’s FinTech sector, Kiwi, a premier company revolutionizing the credit card landscape, has secured a colossal $13 million in Series-A funding. This financial infusion, led by Omidyar Network India, marks a significant milestone in Kiwi’s journey to transform digital payment systems in India.
Kiwi’s Innovative Approach
The Genesis
Founded in November 2022 by Siddharth Mehta, Mohit Bedi, and Anup Agrawal, Kiwi has distinguished itself as the first FinTech enterprise in India to integrate credit cards with UPI (Unified Payments Interface), issuing digital RuPay Cards in collaboration with banking institutions.
Mobile Application: A Gateway to Secure Payments
Kiwi’s state-of-the-art mobile application stands out in the market. Certified by the National Payments Corporation of India (NPCI) as a licensed UPI third-party app, it offers users the flexibility to make secure payments directly from their phones, either through credit cards or bank accounts.
Strategic Growth and Expansion Plans of Kiwi
Current Achievements and Future Goals
Since its inception, Kiwi has issued 25,000 credit cards and is ambitiously targeting to onboard 5 lakh customers by the end of 2024. Presently, Kiwi collaborates with Axis Bank and is poised to partner with two more major banks in the forthcoming six months.
Funding and Development
The recent funding, inclusive of contributions from existing investors like Nexus Venture Partners and Stellaris Venture Partners, plays a pivotal role. It enables Kiwi to further refine its services, expand its ‘credit cards on UPI’ offerings, and embark on the next phase of product innovation and growth.
Impact and Potential of Kiwi
Expanding Credit Access
Anup Agrawal, Kiwi’s co-founder and CEO, emphasized the transformative potential of UPI Credit Cards. Kiwi’s mission is to extend credit facilities to India’s vast UPI user base, particularly focusing on the 300 million UPI users, of whom only 40 million currently meet traditional bank creditworthiness criteria.
Market Expansion Prospects
The UPI user base, 8-10 times larger than existing credit card users in India, coupled with the fact that ‘Credit on UPI’ acceptance points are estimated to be 35 times larger than regular credit card points, positions Kiwi for exponential growth.
Investor Insights
Omidyar Network India’s Vision
Treasa Mathew, Director of Omidyar Network India, highlighted their commitment to advancing financial inclusion in India. The investment in Kiwi aligns with their goal of increasing access to affordable, convenient financial products and fostering the consistent use of formal credit among India’s burgeoning consumer base.
A Pioneering Step
Kiwi’s significant Series-A funding marks a pioneering step in India’s FinTech landscape. With its innovative approach to integrating credit card and UPI services, Kiwi is well on its way to redefine financial inclusion and accessibility in India, offering a promising future for digital payment solutions.
