This is the start-up’s second fundraise in 2023.
In May this year, Kiwi had secured $6 million in funding from investors such as Nexus Venture Partners, Stellaris Venture Partners and a group of angel investors, the company said.
To date, the fintech start-up has issued 25,000 credit cards and plans to have 0.5 million customers by the end of 2024.
It has partnered with Axis Bank and intends to collaborate with two large banks in the next six months.
“We have been big believers in the UPI credit card from the start and seeing it take shape is amazing,” said Anup Agrawal, co-founder and CEO, Kiwi. “We started a few months back and looking at the positive response we have received in the last six months of our existence, this fresh round of financing comes at a critical juncture in our business. The funds will enable us to further develop our services and offer innovative products to our customers as we enter the next phase of product development and growth,” he added.
The company has been certified by the National Payments Corporation of India (NCPI) as a licensed UPI third-party app.
Treasa Mathew, director, Omidyar Network India, added that “increasing access to affordable and convenient financial products beyond digital payments, and ensuring deeper and more consistent usage of formal credit” was the critical next step in India’s financial inclusion journey.
Kiwi was founded in November 2022 by former Freecharge CEO Siddharth Mehta, former Axis Bank and PayU official Mohit Bedi, and former business head at PayU’s Lazypay unit Anup Agrawal.
The company claims to be the first fintech to launch credit cards with UPI by issuing digital RuPay cards in collaboration with banks.
“The number of unique UPI users is 8-10 times the number of existing credit card users in India, and the acceptance points for ‘credit on UPI’ are estimated to be 35X larger than regular credit card acceptance points. This presents significant growth potential for Kiwi,” the company said in a statement.