OneCard, a credit card startup focused on mobile, has raised debt from Alteria Capital totalling Rs 95 crore, or $11.44 million. For the company, this is the second round of debt funding in as many months.
According to OneCard’s regulatory filings with the Registrar of Companies, the board approved a special resolution to issue 9,500 Series B debentures at an issue price of Rs 1,00,000 each in order to raise Rs 95 crore.
The securities subscription agreement states that the debentures will have a 30-month tenure and will be eligible for an annual interest rate of 13.85%. The company will use the debt financing for day-to-day operations, according to additional filings.
OneCard (FPL Technologies) has a credit score tracking/credit management app called OneScore, and it provides co-branded credit to primarily first-time users.
In association with banks like IDFC First Bank, Federal Bank, and SBM Bank, it provides co-branded credit cards. The company and Indian Bank announced their partnership in September 2023, giving users complete digital control over all aspects of their credit card interactions, including real-time transaction tracking, spending management, EMI conversion, and more.
After raising more than $100 million in a Series D round headed by Temasek, the company became a unicorn in 2022. OneCard was reportedly in talks to raise a fresh round of funding worth $100 million at a flat valuation, according to sources close to a mediahouse.
According to a data intelligence platform, Peak XV holds the largest stake (23.27%), followed by QED Holdings and Matrix Partners. Anurag Sinha, Vaibhav Hathi, and Rupesh Kumar, the company’s co-founders, together own 30% of it.
In the most recent fiscal year, the Pune-based company experienced explosive growth, with its operating revenue rising 6.4 times to Rs 541 crore. In the meantime, OneCard’s fiscal year-ending March 2023 losses surged 2.23 times to Rs 406 crore. It is in competition with Accel-funded Uni and Slice, which is backed by Tiger Global and provides co-branded credit cards with banks.
