Fintech startup OneCard is India's newest unicorn after raising $100m led by Temasek

Photo by Annie Spratt on Unsplash

FPL Technologies-owned OneCard has earned the coveted unicorn tag after the Indian fintech startup raised $100 million in a Series D round, according to media reports.

The fundraising, led by Singapore state investor Temasek, valued the startup at over $1.4 billion and made it the 104th entrant in India’s club of unicorns — privately-held startups with a valuation of at least $1 billion.

The round also saw participation from investors such as Sequoia Capital India, Ocean View Investment, QED Holdings, Matrix Partners, and Hummingbird.

OneCard, which competes with Slice and Uni Card, among others, has partnered with Federal Bank, IDFC Bank, Bank of Baroda’s BOB Financial Solutions, South Indian Bank, and State Bank of Mauritius to offer credit cards in India.

An executive from OneCard told DealStreetAsia that the fundraising is ongoing and the company will issue a press release once it is complete.

Founded in 2019 by Rupesh Kumar, Anurag Sinha, and Vibhav Hathi, FPL Technologies also operates an app called OneScore, which helps users understand and learn their credit score.

Earlier this year, the company said that it had amassed over 250,000 customers who were spending about $60 million with its cards each month. It currently offers services in 12 cities across India including Mumbai, Bengaluru, Delhi, and NCR.

The funding round comes six months after OneCard raised $75 million in its Series C round from QED Investors, an existing investor, at a valuation of $750 million. Sequoia, Matrix Partners, and Hummingbird Ventures also participated in the round.

It also comes at a time when the central bank, the Reserve Bank of India, has disallowed non-bank prepaid cards and prepaid wallets — or prepaid payment instruments (PPIs) — from loading these platforms through credit lines.

After limping out of the COVID-19 crisis, PE-VC deal momentum had witnessed an uptick last year on the back of better-than-expected Indian economic revival, successful vaccination drives, and alignment of global macro factors at that point in time.

However, investor sentiment has changed drastically over the past 1-2 months on account of Russia’s war in Ukraine, COVID-induced lockdowns in China, and above all, the increase in interest rates in the US. All these factors have derailed the deal momentum in the short- to medium-term in India. However, 19 companies have still entered the unicorn club of India so far this year.

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