FPL Technologies, a Pune-based fintech startup, announced it has raised $10 million Series A funding led by Matrix India and Sequoia. Hummingbird Ventures along with a few angel investors also participated in the funding round., according to an ETtech report.
The startup will use the funds to scale its recently launched mobile-based credit card product called OneCard which it issues in partnership with IDFC First Bank, co-founder and CEO Anurag Sinha told ET.
FPL was founded in 2019 by Anurag Sinha, Rupesh Kumar and Vibhav Hathi. Till now, the startup has raised a total of $15 million in funding. The first round of capital infusion worth $4.7 million in September last year was led by Matrix and Sequoia.
“We will use the new capital to grow our team, scale the issuance of OneCard and also build new consumer and merchant experiences on the product,” says Sinha, adding that the company seeks to “consumerise” the credit card market where 75% of the share is held by four predominant lenders.
Additionally, FPL is also in talks with two other banks to expand the partnerships on the issuance side, says Sinha who was a former banker at private sector lender ICICI Bank, and also the co-founder at personal finance fintech firm Walnut which got acquired by Capital Float in 2018.
Sinha added that the company has issued about 5,000 credit cards since June for pre-existing customers on its proprietary credit scoring platform called OneScore. The company plans to acquire most of its customers from the OneScore platform where users can monitor and improve their credit scores.
“Ours is a two-stage product,” says Sinha. “We are building a lendable community on OneScore and OneCard. We are also partnering with banks to provide us with long term liability support.” The risk-assessment platform launched last year has over 2 million users, according to the company.
“OneCard changes the game for the consumer credit card experience,” says Shailesh Lakhani, Managing Director, Sequoia Capital India. “The FPL team led by Anurag, Vibhav and Rupesh have built a superior offering with the fastest onboarding, easiest reward redemption, and simplest bill payments.”
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