OneCard Secures Rs 40 Crore in Debt Funding

OneCard is a mobile-first credit card startup that is in the process of raising Rs 40 crore, approximately $4.5 million, in debt funding from its current investor, Alteria Capital. This move comes after a successful $28.5 million funding round last December, which included contributions from QED Investors, Better Tomorrow Ventures, Peak XV, and Z47, valuing the company at $1.4 billion post-money, as reported exclusively by Startup Superb.

Approval for Non-Convertible Debentures

The board of OneCard has approved a special resolution for issuing 4,000 non-convertible debentures (NCDs) with a face value of Rs 1 lakh each to raise the funds mentioned earlier. According to filings made with the Registrar of Companies (RoC), these debentures will have an interest rate of 13.85% per annum and a tenure of three years.

About OneCard

Founded in 2019, OneCard, under FPL Technologies, offers co-branded credit cards primarily targeted at first-time users. The company collaborates with IDFC First Bank, Federal Bank, and SBM Bank. Additionally, OneCard operates OneScore, an application designed for credit score tracking and credit management.

Funding Milestones

Various sources from startup data intelligence platforms indicate that OneCard has raised over $270 million to date. This includes a significant funding round of $100 million in July 2022, which established OneCard as a unicorn.

Financial Performance

On the financial front, this fintech unicorn achieved more than 2.6X year-on-year revenue growth in FY24, hitting Rs 1,426 crore. However, losses during this period were reported at Rs 401 crore. There has been no disclosure yet concerning FY25 figures.

Regulatory Scrutiny

Recently, OneCard has come under the oversight of the Reserve Bank of India (RBI). The regulator has reportedly instructed partner banks to suspend the issuance of co-branded credit cards, seeking increased clarity on the data-sharing processes between OneCard and its banking collaborators.