Fintech startup Kiwi has raised Rs 208.5 crore (approximately $24 million) in its Series B funding round led by Vertex Ventures. The round witnessed participation from existing investors Nexus Ventures, Stellaris Venture Partners, and Omidyar Network, demonstrating continued confidence in the company’s UPI credit card integration model. This funding brings Kiwi’s total capital raised to approximately $43 million since its founding in 2022.
Investment Details and Structure
According to regulatory filings with the Ministry of Corporate Affairs, Vertex Ventures SEA Fund V contributed Rs 113.2 crore, representing the largest single investment in this round. Nexus Ventures VI and Stellaris Venture Partners India Trust II added Rs 47.5 crore and Rs 34.9 crore respectively, while ON Mauritius II invested Rs 12.8 crore. The funding was structured through the issuance of 20,251 Series B Compulsorily Convertible Preference Shares.
Innovative Business Model and Market Position
Established in 2022 by co founders Siddharth Mehta, Mohit Bedi, and Anup Agrawal, Kiwi has positioned itself at the convergence of traditional credit instruments and India’s dominant UPI payment infrastructure. The company operates through a strategic partnership with Axis Bank to issue digital RuPay credit cards that seamlessly integrate with UPI payment systems. This hybrid model addresses a significant market gap by enabling credit card functionality through familiar UPI interfaces, potentially democratizing access to credit facilities across India’s diverse consumer base.
As a licensed UPI third party app provider, Kiwi has demonstrated substantial market penetration, processing 5.8 lakh merchant transactions across more than 586 cities throughout India. This geographical reach underscores the scalability of their technology platform and market acceptance of their innovative payment solution.
Growth Trajectory and Future Outlook
The current Series B round represents continued investor confidence, coming nearly two years after Kiwi’s $13 million Series A funding in November 2023, which was led by Omidyar Network India with support from Nexus and Stellaris. Prior to this, the company had secured $6 million in seed funding during May 2023. With the latest investment, Kiwi’s cumulative funding reaches approximately $43 million, providing substantial capital for expansion and product development initiatives.
