Fintech Startup Kiwi Bags Has $6 Million To Offer Credit On UPI Service

0
60

Kiwi, an Indian fintech startup, has raised $6 million in a seed funding round led by VC firm Sequoia Capital India. The funding will be used to launch a credit offering on its UPI (Unified Payments Interface) service, allowing users to avail credit directly on their UPI handles. Other investors in the funding round include EMVC, Better Capital, and Better Tomorrow Ventures, among others.

Kiwi was founded in 2022 by a team of former Paytm and Google executives, and it aims to provide a digital banking platform that offers a range of financial products and services to customers. The startup’s UPI service allows users to send and receive money, pay bills, and buy products and services from merchants. With the addition of a credit offering, Kiwi hopes to tap into the growing demand for digital lending services in India.

According to a recent report by RedSeer Consulting, digital lending in India is expected to grow at a CAGR of 38% over the next five years, driven by factors such as rising smartphone penetration, increasing digital literacy, and the need for quick and easy access to credit. The report also noted that the UPI platform is likely to play a significant role in the growth of digital lending, as it offers a seamless and secure way to transfer funds and verify identities.

Kiwi’s credit offering is expected to launch later this year, and the company is currently in talks with banks and other financial institutions to partner with for the service. The startup is also planning to use the funding to expand its team and enhance its technology infrastructure.

Kiwi is an Indian fintech startup that offers instant credit to consumers through its UPI-based service. The startup was founded in 2019 by Sumit Gwalani and Rohit Taneja. Kiwi leverages machine learning and data analytics to assess the creditworthiness of users and provides them with an instant line of credit. Users can repay the credit in monthly installments with interest. Kiwi recently raised $6 million in a funding round led by Sequoia Capital India’s Surge program, with participation from existing investor Alteria Capital. The funds will be used to expand Kiwi’s reach, develop new products and services, and enhance its technology infrastructure. With this investment, Kiwi has raised a total of $11.5 million to date.

Kiwi’s UPI-based service is aimed at underserved segments of the population, such as blue-collar workers and small business owners, who may not have access to traditional credit products. The startup claims to have already served more than 1 million users across India and disbursed over INR 300 crore ($40 million) in credit.