Mumbai-based virtual credit card platform Kiwi has successfully raised $13 million in a Series A funding round spearheaded by Omidyar Network India. The funding round also saw the participation of existing investors Nexus Venture Partners and Stellaris Venture Partners. This marks Kiwi’s second funding round in 2023, following its initial $6 million funding led by Nexus and Stellaris Venture Partners in May.
Entrackr had previously reported on Kiwi’s upcoming financing round in September. While the startup did not officially disclose its valuation, sources suggested a $70-80 million valuation post-Series A.
Kiwi’s ambitious plan is to launch new products in the coming year. Among these products are no-cost equated monthly instalments (EMI) on UPI and the initiation of a credit line on UPI, following the guidelines set by the National Payments Corporation of India (NPCI). Kiwi has partnered with Axis Bank and aims to collaborate with two more large banks within six months.
Kiwi’s all-in-one credit on UPI solution allows customers to experience glory on UPI by issuing Rupay cards in collaboration with banks. The user-friendly app enables customers to block cards, increase limits, make card payments, and reward them for every transaction.
Founded by Siddharth Mehta, Mohit Bedi, and Anup Agarwal, Kiwi has made significant strides since its inception. Siddharth Mehta, who resigned from Chief Executive at FreeCharge in February to launch Kiwi, expressed the startup’s commitment to innovation and expansion.
Kiwi reports that it has issued 25,000 virtual credit cards since its launch, with users averaging a monthly spending of about Rs 22,000. According to Mehta, users currently engage in at least 17-18 monthly transactions. Looking ahead, Kiwi has set an ambitious target of providing access to credit on UPI for 500,000 users by 2024.
Kiwi’s ability to secure two funding rounds in 2023 makes it among a select group of startups achieving notable financial milestones. Other companies, including InsuranceDekho and Purple Style Labs, have closed two financing rounds in the current year, reflecting the robust investment landscape across diverse sectors.
