OneCard Secures $28.5 Million in New Funding Round

Pune-based mobile-first credit card startup OneCard is raising Rs 239.4 crore ($28.5 million) in its first equity funding round 2024. Better Tomorrow Ventures, Peak XV (formerly Sequoia Capital), and Z47 (formerly Matrix Partners) are leading the funding.

According to regulatory filings accessed through the Registrar of Companies (RoC), the company’s board approved a special resolution to issue 72,048 cumulative preference shares at a price of Rs 33,228.3 per share.

Funding Breakdown and Valuation

As part of the funding round, OneCard has already secured Rs 71.4 crore, with contributions including:

• Rs 42 crore from Better Tomorrow Ventures,
• Rs 21 crore from Z47, and
• Rs 8.4 crore from Peak XV.

The remaining Rs 168 crore is expected to be disbursed in one or more tranches. Following the funding round, OneCard’s valuation has been pegged at approximately Rs 11,747 crore ($1.4 billion), maintaining its unicorn status.

Strategic Partnerships and Market Position

OneCard, operated by FPL Technologies, specializes in co-branded credit cards tailored for first-time users through partnerships with leading banks such as IDFC First Bank, Federal Bank, and SBM Bank. The startup also offers a credit management app, OneScore, enabling users to monitor their credit scores and manage credit card transactions seamlessly.

In September 2023, OneCard partnered with Indian Bank to provide users with enhanced digital control over their credit card transactions, including real-time tracking, spending management, and EMI conversion.

Financial Growth and Challenges

On the financial front, OneCard achieved a significant 6x YoY growth in operating revenue, climbing to Rs 593 crore in FY23 from Rs 97.8 crore in FY22. However, the company’s losses also surged 2.2x, reaching Rs 405.6 crore in FY23.

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Since its inception, OneCard has raised over $350 million and turned unicorn in July 2022, following a $100 million funding round. According to data from TheKredible, Peak XV and Z47 collectively hold a 40% stake in the company.

Looking Ahead

With a strong funding base and strategic partnerships, OneCard aims to strengthen its position as a leader in India’s credit card ecosystem. The company’s focus on first-time credit users and its innovative digital offerings place it at the forefront of transforming credit management in the country.