OneCard, a mobile-first credit card firm, is on track to become India’s 104th unicorn and the 19th of the current calendar year (2022).
The parent company of OneCard, FPL Technologies, completed a USD 102 million Series D fundraising round on 13th July 2022 that was coordinated by Temasek Holdings of Singapore (via MacRitchie Investments). The brand of mobile-only credit cards is currently valued at more than USD 1.4 billion.
According to the startup’s regulatory filings, investors including Sequoia Capital, Ocean View Investment, QED Holdings, Matrix Partners, and Hummingbird participated in the round.
In the funding round, OneCard distributed 2,68,891 Series D cumulative, non-redeemable mandated, fully convertible preference shares and ten equity shares to the investors.
More about the startup:
The first mobile metal card from OneCard, founded in 2018 by Anurag Sinha, Rupesh Kumar, and Vaibhav Hathi, was introduced in 2020. The startup provides Visa credit cards in collaboration with banks like IDFC Bank, South Indian Bank, Federal Bank, Bank of Baroda Financial, and SMB Bank. Along with cards, the business also provides OneScore, a no-spam, digital credit scoring platform that allows users to check their credit scores for free.
The business also runs the OneScore app, which enables users to comprehend and learn about their credit scores. OneCard has previously stated that the app is one of its primary sources of new customers.
OneCard said earlier this year that it had collected over 250,000 subscribers and that they were using their cards to make around USD 60 million in monthly purchases. Anurag Sinha, co-founder and CEO of the firm estimated that between 80 million and 90 million Indians were eligible for a credit card in January.
Competition and Performance:
Over 250 thousand cards have already been sent out to clients by the business. OneCard reported total income of INR 16.3 Crore (USD 2.1 million) for FY21, of which INR 10.7 Crore (USD 1.3 million) was generated via sales. Compared to FY20, when the startup produced about INR 1 Crore (USD 130K) in revenue, this represented a considerable increase.
That is not to argue that the issuers of credit cards do not have their problems. UPI, a five-year-old payments network created by retail banks, has swiftly gained popularity and is currently India’s most common payment method. The rapid adoption of UPI has reduced some debit card usage, but it seems credit cards have so far been entirely unaffected.
Slice, Karbon Card, Uni Card, and Kodo Card are some of the rivals of OneCard. Fintech businesses are still a favorite among investors despite the continuing funding winter.
Four of the 22 fintech unicorns India has produced—including OneCard—entered the exclusive membership in 2022. Open, Oxyzo, and Yubi (formerly CredAvenue) raised money earlier this year with a valuation of over USD 1 Bn.
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