Fintech startup Uni has raised $18.5 million in seed funding led by Lightspeed India Partners and Accel Partners.
Uni aims to bridge the gap in the credit card market by making them more accessible to consumers across different regions.
Co-founded by Nitin Gupta, co-founder and CEO of PayU India and former CEO of Ola financial services, Uni is in stealth mode.
“Over the last five years, we have witnessed a 3x acceleration of digital and electronic payment platforms, however, the share of credit card payments has fallen drastically. There is an opportunity to expand the market from 58 million credit cards in India today to 200 million credit cards over the next 5 years by building new products, catering to underserved customer needs and getting new customer segments,” said Nitin Gupta, founder and CEO, Uni.
The credit card market in India today is still under-penetrated as compared to digital payments, with just 34 million credit card users having 58 million credit cards whereas there are more than 100 million Indians today who pay digitally and electronically. Focused on filling this gap, Uni will aim to target the e-commerce and internet-savvy generation in India who are looking at leading aspirational lifestyles.
“Credit cards is a very large and exciting market. It has over $100 billion in annual spends and still less than 2.5% of the Indian population has a credit card today. The opportunity in front of us is truly immense,” said Prayank Swaroop, Partner, Accel India.
This article was first published on livemint.com.