India’s mobile-first credit card startup OneCard is reportedly in talks to raise $100 million at a valuation of $1.5 billion.
FPL Technologies, which operates OneCard, is reportedly in “advanced talks” with Singapore’s Temasek, one of the world’s largest investors, to lead the new funding round.
Pune-headquartered OneCard, founded by Sinha, Rupesh Kumar, and Vibhav Hathi in 2019, raised $75 million last month in the Series C funding round, led by QED, at the valuation of $750 million. Janchor Partners, Sequoia Capital India, Matrix Partners and Hummingbird Ventures had also participated in the round.
The Series B round raised funds of $35 million at a valuation of $183 million.
“We keep in talks with the existing investors – we have to ensure that they understand us well. Some of them have invested in banks as well globally,” Anurag Sinha, Co-founder and CEO, FPL Technologies, was quoted as saying by Indian newspaper Hindu BusinessLine.
“We are a three-year-old company and we want to scale. Most of our investors are long term investors like QED, Sequoia, Matrix,” he said without confirming talks with Temasek.
OneCard’s cards come without any joining fee or annual fee, and give customers better control and flexibility over how they transact.
OneCard, which offers a range of personalized rewards and loans to customers, also has an app called OneScore, which helps users understand and find their credit score.
India’s credit card market is still in the nascent stages – only around 30 million Indians currently own a credit card, even as nearly a billion bank accounts exist in the South Asian market.
Sinha had earlier estimated that about 80 million to 90 million Indians are eligible to have a credit card.
OneCard claims to have 250,000 customers who are spending about $60 million with its cards each month, according to media reports.