Alteria Invests Rs 95 Crore in OneCard via Debt Funding

By siliconindia  |  Saturday, 06 January 2024, 07:31 IST

Alteria Invests Rs 95 Crore in OneCard via Debt Funding
OneCard, a credit card startup with a mobile-first approach, has successfully secured Rs 95 crore (approximately $11.44 million) in debt funding from Alteria Capital. This marks the company's second round of debt funding recently. According to official documents, OneCard's board has given the green light for the issuance of 9,500 Series B debentures, each priced at Rs 1,00,000, to raise the specified amount. The debentures come with a 30-month tenure and carry an annual interest rate of 13.85%, as outlined in the securities subscription agreement.
“The debt funding will be used for our business operations,” stated the filings. Operating under the name OneCard, FPL Technologies specializes in offering co-branded credit services primarily targeting first-time users. In addition, the company provides the OneScore app, facilitating credit score monitoring and management. OneCard has established partnerships with banks such as IDFC First Bank, Federal Bank, SBM Bank, and most recently, Indian Bank, to empower users with digital control over their credit cards.
“In 2022, we became a unicorn after a Series D round led by Temasek", confirmed sources. Talks were underway for another funding round of $100 million at a flat valuation. OneCard's largest stake is held by Peak XV at 23.27%, with Matrix Partners and QED Holdings following closely. The company's co-founders, Anurag Sinha, Vaibhav Hathi, and Rupesh Kumar, together own a 30% share in the business.
“OneCard experienced remarkable growth in the last fiscal year, witnessing a 6.4X surge in revenue to Rs 541 crore", reported sources. However, the company also faced a 2.23X increase in losses, reaching Rs 406 crore by the end of March 2023. The market for co-branded credit cards sees competition from companies like Slice backed by Tiger Global and Uni supported by Accel, all vying for partnerships with banks.

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