Virtual credit card platform Kiwi is currently in discussions to raise approximately $15 million in a new funding round, according to two sources familiar with the matter. This will mark the second fundraising effort for the Bengaluru-based startup this year.
One of the sources, who requested anonymity, stated that “Kiwi is in late-stage talks to raise $15 million from Omidyar and Nexus Venture Partners.” The terms of the deal have been finalized, and an official announcement is expected in the coming weeks.
Nexus and Stellaris Venture Partners are already supporters of the company, having led Kiwi’s maiden $6 million funding round in May. Sources suggest that Kiwi could be valued between $70-80 million in this Series A round. The investment from Omidyar is estimated to be around $7 million, with the rest coming from other investors.
As of now, there has been no response from Omidyar, Kiwi, Nexus, or Stellaris to the queries regarding this funding round.
Kiwi was founded by Siddharth Mehta, who previously held a top position at FreeCharge. In partnership with Mohit Bedi and Anup Agarwal, Mehta launched Kiwi and introduced an all-in-one credit on UPI solution, allowing customers to experience credit on UPI by issuing Rupay cards in collaboration with banks.
The Kiwi app offers features such as card blocking, increased limits, and card payments, while also rewarding users for each transaction. According to Sensor Tower data, the Kiwi app has been downloaded less than 200,000 times across the Play Store and App Store.
In June 2022, the Reserve Bank of India (RBI) gave approval for linking RuPay credit cards to the UPI network. This decision is expected to significantly benefit fintech players like Kiwi, as the company aims to provide credit access on UPI to one million users by 2024.