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Indian fintech startup OneCard raises $100M funding, joins unicorn club

Photo Credit: OneCard

Following a new round of funding, FPL Technologies, an Indian startup that distributes credit cards to customers under the brand name OneCard, is the latest in the South Asian market to join the unicorn club.

FPL Technologies-owned OneCard, a fintech startup has secured $100M in its current Series D financing.The $100M financing values the startup at more than $1.4B, making it the latest entrance into the unicorn club.

Temasek, based in Singapore, led the round, with existing investors QED, Sequoia Capital, and Hummingbird Ventures also participating in the fundraise. This brings OneCard’s to-date raise to over $225M.

Timing is crucial

The funding comes in the midst of the Reserve Bank of India’s crackdown on non-banks offering credit lines through PPI devices such as digital wallets or stored-value cards.

Fewer than 30 million Indians use a credit card today, leaving a tremendous gap for the country’s entrepreneurs to innovate on technology and reach more people. Banks across the country and beyond are increasingly striving to increase their own credit card user bases, but their stringent and archaic eligibility rules render most Indians ineligible.

FPL Technologies, founded in 2019 by Anurag Sinha, Rupesh Kumar, and Vibhav Hathi, provides credit cards through OneCard, a mobile-first and metal credit card service. It first introduced “One Score” in 2019 as a digital credit score platform that provides free credit score checks and personalised insights to consumers in order for them to monitor and manage their credit health in an easy and safe manner.

Federal Bank, IDFC Bank, Bank of Baroda’s BOB Financial Solutions, South Indian Bank, and State Bank of Mauritius have all worked with the company. It competes with Slice, Karbon Card, Uni Card, and Kodo Card, among others.

Credit cards

Credit card companies are not immune to their own problems. UPI, a five-year-old payments system created by retail banks, has swiftly acquired traction and is now the most popular means for Indians to transact. The rapid adoption of UPI has reduced the use of debit cards, while credit cards appear to be relatively impervious.

The company also runs the OneScore app, which helps customers understand and learn about their credit score. According to prior statements, the app is one of the most important client acquisition drivers for OneCard.

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