Fintech Startup OneCard Secures INR 71.4 Cr in Latest Funding Round

Pune-Based OneCard Raises Fresh Capital as Part of Larger $28.4 Million Funding Round

OneCard, the Pune-based fintech startup specializing in co-branded credit cards, has successfully raised INR 71.4 crore (approximately $8.5 million) in its ongoing funding round. The company aims to secure a total of INR 239.4 crore (around $28.4 million) to fuel its expansion and strengthen its market position. The details of this funding were disclosed through the startup’s regulatory filings with India’s Ministry of Corporate Affairs (MCA).

Leading the round are US-based venture capital firm Better Tomorrow (BTV) Capital, along with Peak XV and Z47 (formerly Matrix Partners), which have all made significant contributions. In a board meeting held on November 18, 2024, OneCard’s directors approved the issuance of 72,048 Series D2 compulsory convertible preference shares (CCPS) to raise the funds. These shares will be issued at a face value of INR 30, with a premium of INR 33,198.35. To date, OneCard has secured INR 42 crore from BTV, INR 8.4 crore from Peak XV, and INR 20.9 crore from Z47.

Strategic Growth and Investment Plans

The fresh capital raised will primarily be directed towards enhancing OneCard’s operations, improving customer experience, and scaling its offerings. The startup is also planning to introduce innovative products, develop new features, and provide more personalized solutions to its growing user base.

Founded in 2018 by Anurag Sinha, Rupesh Kumar, and Vibhav Hathi, OneCard provides co-branded credit cards in partnership with major banks, including Federal Bank and Bank of Baroda. The platform also offers a range of credit card-related services, such as credit score checks and an expense management app, further expanding its appeal to consumers in a competitive market.

Solid Revenue Growth Amid Rising Losses

OneCard has demonstrated impressive growth in terms of revenue. For the financial year ending March 31, 2023 (FY23), the startup reported a sixfold increase in operating revenue, reaching INR 541.1 crore, up from INR 83.7 crore in FY22. Despite the revenue growth, OneCard has struggled with mounting losses. The company’s net losses for FY23 more than doubled, climbing to INR 405.6 crore, compared to INR 182.7 crore in the previous fiscal year.

The startup’s financial challenges come at a time when it is expanding rapidly in the highly competitive fintech space. As OneCard continues to develop its offerings, its ability to manage expenses and sustain growth while navigating the competitive landscape will be crucial.

A Promising Journey with Major Milestones

OneCard’s rise in the fintech sector has been notable. In July 2022, it entered the coveted “unicorn” club after securing $100 million from Temasek, taking its valuation to over $1 billion. To date, the startup has raised a total of $111.41 million from high-profile investors such as Peak XV Partners, QED Holdings, and Hummingbird, further cementing its place in the rapidly evolving credit card industry.

Facing Fierce Competition

Operating in a competitive market, OneCard is up against several other fintech players offering similar products. Rivals like Slice, Karbon Card, Uni Card, and Kodo Card have been working to capture the attention of Indian consumers with their own unique credit card offerings. However, OneCard has been able to maintain its presence in the market through innovative solutions and strategic partnerships, ensuring it remains a formidable player in the sector.

Looking Forward: Customer-Centric Growth Strategy

As OneCard continues its growth trajectory, the company remains focused on delivering customer-centric solutions. With support from its investors, OneCard plans to refine its product offerings and strengthen its position in India’s credit card market. The startup’s efforts to innovate and create a personalized user experience could play a key role in securing long-term growth, especially in the face of mounting competition and challenges.

With the latest infusion of INR 71.4 crore, OneCard is poised to further expand its footprint in the Indian fintech space. The company’s growth strategy hinges on enhancing its product portfolio, refining customer experiences, and leveraging its partnerships. As the competition intensifies in India’s fintech market, OneCard’s ability to adapt to changing consumer demands and deliver innovative solutions will be crucial to its continued success.