Credit card platform Kiwi has raised $6 million in pre-Seed funding round
"With more than 30 crore unique users and 5 crore businesses signed up on the platform, UPI has emerged as India's most inclusive method of payment. With the release of the Kiwi app, users may now combine the strength of a (RuPay) credit card with the practicality and simplicity of UPI for the first time in India. Over the next 18 months, we want to give 1 million users access to credit on UPI, according to Kiwi co-founder Siddharth Mehta.
Senior fintech specialists and banking sector veterans Siddharth Mehta (former CEO, Freecharge), Mohit Bedi (former executive, Axis Bank and PayU), and Anup Agrawal (former business head, LazyPay) co-founded Kiwi in November 2022.
The Unified Payments Interface (UPI) and RuPay credit cards can now be linked, according to the RBI. A user will be able to instantaneously and digitally apply for a virtual RuPay credit card via the Kiwi app. The business claimed that in order to issue these credit cards, it will collaborate with several of the top banks. With this card connected to UPI, the customer can use their credit card to make purchases from any merchant QR. Other services offered by the app include P2P transfers from Savings and UPI on Savings.
"Kiwi will be a game-changer in the Indian credit card sector as we take a step towards realising the vision of 'Digital Payments for All. According to Praveena Rai, COO of NPCI, "Kiwi is positioned to leverage on a major untapped market because the monthly expenditure on UPI P2M transactions is roughly Rs 3.2 lakh crore, which is over 2.5 times larger than the monthly credit card expenditures.
Kiwi will provide customers with the finest features of both credit cards and UPI, including the ease, rewards, and flexible payback options of credit cards as well as the unrivalled acceptance speed of UPI, which is widely used in India. Anup Gupta, Managing Director of Nexus Venture Partners, remarked, "We are thrilled to join with team Kiwi in their mission to accelerate credit card acceptance in India.