Kiwi Fintech Startup Secures $23 Million Funding

Kiwi, a fintech startup, is raising $23 million from both new and existing investors, as reported by two knowledgeable sources. This new funding arrives almost two years after the Mumbai-based startup’s previous financing round. One of the sources, who chose to remain anonymous due to the confidential nature of the discussions, noted, “Vertex Ventures has issued a term sheet to lead the round.” It is anticipated that Kiwi will be valued at over $100 million (post-money) in this investment round, which will also include participation from existing investors like Stellaris VP and Nexus VP.

This latest fundraising follows Kiwi’s Series A round in November 2023, when it garnered $13 million led by the aforementioned existing investors. At that time, the startup was valued at approximately $65 million. The fundraise for Kiwi has also been confirmed through regulatory filings.

About Kiwi

Founded in 2022 by former Freecharge executive Anup Agrawal, along with Satyam Kumar and Siddharth Mehta, Kiwi allows users to perform UPI payments using RuPay credit cards. The company collaborates with Axis Bank and has partnered with NPCI to enhance the adoption of credit within the UPI framework.

Unique Payment Solutions

Unlike conventional credit cards, Kiwi issues a virtual RuPay card that seamlessly links to UPI applications such as Google Pay and PhonePe. The startup faces competition from companies such as Slice, OneCard, and Uni, among others.

Investor Response

Kiwi has not provided any comments regarding this news, and inquiries directed at Vertex, Omidyar, Nexus, and Stellaris have not received responses. The growing interest from investors in Kiwi aligns with the Reserve Bank of India and NPCI’s efforts to promote broader use of credit through UPI. Since the feature’s launch in 2022, it has gained momentum as banks and fintech firms explore innovative solutions to enhance credit usage in digital payment systems.

Ownership Structure

Kiwi asserts that it was the first to introduce credit on UPI with a comprehensive offering. Based on startup data intelligence platforms, as of the Series A round, Siddharth Mehta, Anup Agrawal, and Mohit Bedi each hold approximately 16.2% of the company. Meanwhile, Nexus stands as the largest external investor in the three-year-old fintech startup.