OneCard’s Parent Secures $14.4 Mn From Alteria Capital

Venture debt fund Alteria Capital, which counts Rebel Foods, Spinny, Mensa Brands and Zepto as among its portfolio companies, has infused INR 120 Cr ($14.4 Mn) into fintech unicorn’s parent entity FPL Technologies.

The funding comes within two weeks after OneCard secured INR 95 Cr ($11.44 Mn) in debt capital from Alteria Capital.

OneCard will deploy the fresh proceeds to scale up customer experience by developing innovative products, incorporating additional features and offering personalised solutions.

“The partnership with Alteria will help us fuel these initiatives faster, empowering us to scale new heights in the new-age credit card landscape,” Mint reported, citing OneCard’s founder Anurag Sinha in a statement.

Alteria’s recent investment reflects the evolving landscape of venture debt in the Indian market, catering to startups across sectors and growth stages. Later-stage startups are encouraged by the utility of debt for very focused end uses which can fuel the company’s growth in the medium term, the statement said.

Founded by 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 check and an expense management application.

OneCard simplifies digital banking with its app, integrating credit card functions like transactions, rewards, offers, credit on UPI, EMIs, and monthly spending budgets.

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.

The startup 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 FY23 from INR 83.7 Cr in the previous fiscal year.

During FY2023, OneCard witnessed a substantial increase in its net loss, which more than doubled compared to the previous year. The company reported a net loss of INR 405.6 Cr in FY23, marking a significant surge of 122% from the INR 182.7 Cr reported in FY22.