Indian FinTech startup Kiwi has recently made headlines with its successful $13 million Series-A funding round. This marks a significant leap in the company's journey towards revolutionizing India's digital payment landscape.

The Journey of Kiwi

Founded in November 2022 by Siddharth Mehta, Mohit Bedi, and Anup Agrawal, Kiwi emerged as a key player in India's rapidly growing FinTech sector. Specializing in the integration of credit cards with the Unified Payments Interface (UPI), Kiwi has developed a unique digital solution in collaboration with banks to issue digital RuPay cards​​​​.

Funding and Growth

The recent Series-A funding, led by Omidyar Network India, included contributions from existing investors Nexus Venture Partners and Stellaris Venture Partners. Kiwi's board issued 12,537 Series A compulsory convertible preference shares at Rs 86,070 per share to raise Rs 107.9 crore, equivalent to $13 million. This funding round followed a $6 million seed funding raised earlier in the year​​​​.

Innovation in Payment Solutions

Kiwi's state-of-the-art mobile application offers users the flexibility to make secure payments directly from their phones, either through credit cards or bank accounts. As a licensed UPI third-party application by the National Payments Corporation of India (NPCI), Kiwi ensures secure and reliable services. This innovation caters to a vast UPI user base, significantly larger than existing credit card users in India​​​​.

Market Impact and Future Goals

Since its launch, Kiwi has issued 25,000 credit cards and targets to onboard 5 lakh customers by the end of 2024. The startup is currently collaborating with Axis Bank and plans to partner with two more major banks in the next six months. The integration of credit cards with UPI is estimated to have acceptance points 35 times larger than regular credit card points, positioning Kiwi for exponential growth​​​​.

Leadership and Strategy

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, focusing on those who do not meet traditional bank creditworthiness criteria. Post-funding, the founders diluted their stakes to 16.2% each, with Nexus Ventures becoming the largest stakeholder. The company's strategic moves reflect its commitment to innovation and financial inclusion​​​​.

Financial Performance

Despite being in the pre-revenue stage during FY23, Kiwi generated Rs 31.8 lakh from non-operating activities. However, the company's losses stood at Rs 2.86 crore during the fiscal year. This highlights the challenges and opportunities for growth in the FinTech sector​​.

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 redefining financial inclusion and accessibility in India, offering a promising future for digital payment solutions.