Kiwi Raises $24 Mn In Series B To Power UPI-Linked Credit Card Revolution

In India’s fast-evolving fintech landscape, where UPI has become a household term and digital payments are part of daily life, startups continue to innovate at the intersection of convenience and credit. The latest to make waves is Kiwi, a Bengaluru-based fintech startup that has secured INR 208.5 Cr (about $24 Mn) in a Series B funding round led by Vertex Ventures, with participation from Nexus Ventures, Stellaris Venture Partners, and Omidyar Network (ON).

According to regulatory filings, Vertex Ventures SEA Fund V Pte Ltd infused the largest share of capital at INR 113.2 Cr, while Nexus Ventures VI Holdings LLC and Stellaris Venture Partners India Trust II pitched in INR 47.5 Cr and INR 34.9 Cr, respectively. Omidyar’s Mauritius-based arm contributed INR 12.8 Cr. In total, Kiwi issued 20,251 Series B CCPS shares to these investors.

Building The Future Of Credit + UPI

Founded in 2022 by Siddharth Mehta, Mohit Bedi, and Anup Agrawal, Kiwi sits at the unique crossroads of credit cards and UPI payments. In partnership with Axis Bank, the startup issues digital RuPay credit cards that can be directly linked to a user’s UPI account. This allows consumers to seamlessly use their credit card for everyday UPI transactions — from groceries at a kirana shop to a quick coffee at a local café.

As one of the few licensed UPI third-party app providers (TPAP), Kiwi has been quietly scaling. The startup claims to have already processed 5.8 Lakh merchant transactions across more than 586 Indian cities — a strong signal that consumer appetite for credit-backed UPI payments is only growing.

A Funding Journey Backed By Big Names

This latest round marks Kiwi’s biggest fundraising milestone yet. The company last raised $13 Mn in its Series A round in November 2023, led by Omidyar Network India, along with Nexus and Stellaris. Prior to that, it secured $6 Mn in seed funding in May 2023. With the new round, Kiwi’s total funding now stands at about $43 Mn — a remarkable feat for a startup that’s just three years old.

Why Investors Are Betting Big

The timing of Kiwi’s rise is no coincidence. India’s payments ecosystem is undergoing a massive transformation. According to NPCI MD and CEO Dilip Asbe, about 16% of all credit card spending in India now happens on the RuPay network, and nearly half of these transactions are routed via UPI.

This trend is being powered by a combination of factors: rising smartphone penetration, rapid internet adoption, and a consumer base that’s increasingly comfortable with digital-first financial products. By allowing users to enjoy the flexibility of a credit card while transacting via UPI — India’s most trusted payments backbone — Kiwi is positioning itself right at the center of this consumer shift.

The Bigger Picture: A $2.1 Tn Fintech Opportunity

India’s fintech market is projected to touch $2.1 Trillion by 2030, and much of this growth will come from innovative solutions that bridge gaps between traditional financial instruments and digital rails. Credit cards linked with UPI represent one such bridge, enabling both banks and consumers to unlock new value.

Unsurprisingly, competition in this space is heating up. Just last month, Zaggle acquired Rio.Money to foray into the consumer credit card segment, highlighting how attractive this market has become. Kiwi, with its early-mover advantage and strong investor backing, will likely look to double down on scaling adoption and expanding partnerships.

For now, Kiwi is focused on deepening its footprint across Indian cities and strengthening its product offerings. With fresh capital in hand, the fintech is expected to invest in technology upgrades, user acquisition, and possibly new banking collaborations.

The startup’s founders believe that India is at the cusp of a new digital credit revolution — one where UPI is not just a payment mode but also a gateway to responsible credit. And if current trends are any indication, Kiwi could very well be among the frontrunners shaping that future.

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