Fintech startup Kiwi has secured $13 million in its latest funding round led by Omidyar Network India, marking a significant stride in the realm of digital payments. The company, founded in February 2023, has rapidly gained traction by offering virtual RuPay credit cards integrated with the Unified Payments Interface (UPI) service on its app.
Kiwi’s Innovative Approach:
The startup introduced its flagship product, virtual RuPay credit cards, in partnership with Axis Bank, empowering users to link these cards seamlessly with UPI for digital transactions. This novel initiative leverages the convenience and widespread accessibility of the UPI infrastructure, allowing users to make digital payments effortlessly.
Funding Progression and Growth Trajectory:
This round of funding represents Kiwi’s second institutional fundraising endeavor, following its earlier achievement of securing $6 million in May. Notably, the recent funding round witnessed participation from existing investors Nexus Venture Partners and Stellaris Venture Partners, alongside contributions from angel investors.
Vision for the Future:
Kiwi’s vision for expansion includes the launch of newer products in the coming year, notably no-cost Equated Monthly Installments (EMI) on UPI. Furthermore, the company aims to introduce a credit line on UPI, facilitated by the National Payments Corporation of India (NPCI), which operates the UPI service in the country.
Strategic Utilization of Funds:
The freshly acquired funding will be channeled toward strategic endeavors, focusing on amplifying marketing efforts, enhancing technological infrastructure, and refining customer experience. Kiwi also plans to bolster its team by making key senior appointments to drive its growth trajectory.
Leadership and Growth Strategy:
Spearheaded by co-founders Siddharth Mehta, Mohit Bedi, and Anup Agrawal, Kiwi boasts a leadership team with extensive experience in the payments and fintech landscape. Mehta, the former chief executive at Freecharge, emphasizes Kiwi’s commitment to scaling up operations and strengthening market presence.
Accelerating Financial Inclusion:
Kiwi’s innovative virtual credit card platform has already issued 25,000 cards, with users exhibiting an average monthly spend of Rs 22,000 per user. The platform incentivizes transactions through cashback rewards, driving consistent and meaningful engagement among its growing user base.
Future Expansion and Inclusivity:
With plans to onboard new banking partners, Kiwi aims to broaden its services to encompass users from tier 2 and 3 cities, ultimately targeting the issuance of 500,000 virtual credit cards within the next year. This strategic expansion aligns with the company’s mission to democratize access to financial products and promote widespread financial inclusion across India.
Kiwi’s success underscores its pivotal role in redefining digital payments, fostering financial inclusion, and ushering in a new era of seamless and accessible digital financial services for India’s burgeoning market.
