Fintech startup Kiwi has announced that it is raising USD 23 million from new and existing investors, marking its first funding round in almost two years.
This recent fundraising follows Kiwi's Series A round in November 2023, during which it raised USD 13 million, led by the previously mentioned existing investors. At that time, the startup was valued at approximately USD 65 million. Entrackr has also verified the fundraising through regulatory filings.
Kiwi allows users to make UPI payments using RuPay credit cards. The company collaborates with Axis Bank and has partnered with NPCI to promote the adoption of credit on UPI.
Virtual RuPay card offering
In contrast to traditional credit cards, Kiwi offers a virtual RuPay card that can be linked to UPI apps like Google Pay and PhonePe. The firm competes with other players such as Slice, OneCard, and Uni.
Kiwi has chosen not to comment on this development, and inquiries directed to Vertex, Omidyar, Nexus, and Stellaris have gone unanswered.
Investor interest and industry initiative
Investor enthusiasm for Kiwi aligns with the broader initiative by the Reserve Bank of India and NPCI to facilitate greater acceptance of credit on UPI. Since its introduction in 2022, the feature has gained momentum, with both banks and fintech firms exploring solutions to increase credit usage in digital payments.
Kiwi's market position and ownership
The company asserts that it was one of the first to introduce credit on UPI with a comprehensive offering. According to startup data intelligence platform TheKredible, as of the Series A round, Siddharth Mehta, Anup Agarwal, and Mohit Bedi each hold approximately 16.2% of Kiwi, while Nexus stands as the largest external stakeholder in the three-year-old startup.
