Fintech Startup Uni raises $70 million led by General Catalyst & Others
General Catalyst led a fresh round of fundraising for PayU India cofounder Nitin Gupta's company. New investors include venture capital firms such as Eight Roads Ventures, Elevation Capital, and Arbor Ventures.
This round included existing investors Lightspeed and Accel India, and the Bengaluru-based business is now valued at $350 million, up from around $45 million a year ago. Gupta plans to use the fresh money to expand the company's product line and increase monthly payouts through its Uni cards, according to Gupta.
CredAvenue raised $90 million in September, making it the highest Series A fundraising round for an Indian firm.
“Uni card is our first product. There are four more products in the pipeline that will be launched in the next year. It will again be a combination of rewards, repayment period and so on. We are looking to launch a credit card too,” he said.
Uni, which is only a year old, raised $18.5 million from Lightspeed and Accel India in one of the largest seed rounds last year.
Uni basically lets users with good credit to buy purchases with its card and pay for them in three equal instalments at no cost. If you want to take longer than three months, you can use EMIs or late fines to make your payments. Uni will try to tap into the new-to-credit userbase with the new products in the works, according to Gupta.
According to him, the company has experienced rapid acceptance among consumers, with monthly disbursements increasing from approximately Rs 80 lakh to around Rs 175 crore in just six months. "By September next year, we hope to have monthly disbursals of Rs 1,500 crore," he added.
Uni will utilise the extra funds to expand its user base, spend on marketing, and, in general, grow quicker while launching new products, according to Gupta.