OneCard To Raise INR 239.4 Cr From Peak XV, Others

SUMMARY

OneCard has secured INR 71.4 Cr ($8.5 Mn) as part of its larger funding round

US-based venture capital (VC) firm Better Tomorrow Ventures (BTV), Peak XV and Z47 (erstwhile Matrix Partners) will be subscribing to the shares

During OneCard’s board meeting on November 18, its board of directors approved the issue of the Series D2 CCPS at a face value of INR 30 and a premium of INR 33,198.35

Fintech startup OneCard has secured INR 71.4 Cr ($8.5 Mn) as part of its larger funding round via which it aims to raise INR 239.4 Cr ($28.4 Mn).

According to the startup’s regulatory filings with the MCA, the company is looking to secure the fresh capital by issuing 72,048 Series D2 CCPS.

US-based venture capital (VC) firm Better Tomorrow Ventures (BTV), Peak XV and Z47 (erstwhile Matrix Partners) will be subscribing to the shares. During OneCard’s board meeting on November 18, its board of directors approved the issue of the Series D2 CCPS at a face value of INR 30 and a premium of INR 33,198.35.

As of now, the startup has netted INR 42 Cr from BTV, INR 8.4 Cr from Peak XV and INR 20.9 Cr from Z47.

The development comes after the venture debt fund Alteria Capital in January infused INR 120 Cr ($14.4 Mn) into the company. Before that, it also invested INR 95 Cr ($11.44 Mn) in debt funding in the same month.

The company then noted that it plans to deploy the fresh capital for business operations. Besides, the funds will scale up customer experience by developing innovative products, incorporating additional features and offering personalised solutions.

Founded by Anurag Sinha, Rupesh Kumar and Vibhav Hathi in 2018, OneCard offers a co-branded credit card in partnership with banks such as Federal Bank and Bank of Baroda Financial, among others. The platform also offers credit card-related services such as credit score checks and an expense management application.

To date, the company has raised a total of $111.41 Mn and it counts Peak XV Partners, QED Holdings and Hummingbird as among its marquee backers. The startup entered the unicorn club in July 2022 after bagging $100 Mn from Temasek.

OneCard competes with the likes of Slice, Karbon Card, Uni Card and Kodo Card, among others.

On the financial front, OneCard reported a 6X increase in its operating revenue in the financial year ended March 31, 2023.

The credit card issuer’s operating revenue surged to INR 541.1 Cr in the financial year 2022-23 (FY23) from INR 83.7 Cr in the previous fiscal year.

OneCard’s loss more than doubled during the year under review. It reported a net loss of INR 405.6 Cr in FY23, an increase of 122% from INR 182.7 Cr in FY22.