Friday, October 3, 2025

Kiwi Raises $24M to Scale Credit-on-UPI Offering

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Fintech startup Kiwi has raised $24 million (around Rs 208 crore) in a Series B funding round to expand its Credit-on-UPI services. The investment was led by Vertex Ventures Southeast Asia & India, with participation from existing investors Nexus Venture Partners, Stellaris Venture Partners, and Omidyar Network.

The company said the funds will be used to accelerate product development, strengthen unit economics, and expand its fast-growing Credit-on-UPI service. Kiwi also plans to introduce new features like EMI options and enhanced rewards programmes for customers.

Kiwi: Credit-on-UPI Offerings

Founded by Siddharth Mehta, Mohit Bedi, and Anup Agrawal, Kiwi focuses on enabling access to credit through RuPay credit cards linked with UPI. This unique model makes credit payments faster, simpler, and more widely accepted.

Since launching in 2023, Kiwi has already issued 2 lakh RuPay credit cards and is processing more than 5 million merchant transactions every month across 600 cities. The startup currently partners with YES Bank and AU Small Finance Bank and plans to bring two more large banking partners on board this year.

Wide Network Presence

According to co-founder and CEO Anup Agrawal, Kiwi’s mission is to become the leading platform for Credit-on-UPI. “Our aim is to give users a seamless onboarding process, payment convenience, and attractive rewards. The fresh funding allows us to build innovative products and scale faster,” he said.

Investor Kanika Mayar, Partner at Vertex Ventures, highlighted Kiwi’s unique positioning: “Credit Card on UPI combines the deep reach of UPI with the rising demand for credit. Kiwi is well placed to lead adoption in India.”

Credit Market Potential

India has over 350 million unique UPI users, which is nearly 8–10 times the number of credit card users. The acceptance network for Credit-on-UPI is estimated to be 35 times larger than traditional credit cards, creating significant growth potential.

By combining UPI’s wide reach with the flexibility of credit cards, Kiwi aims to issue 1 million RuPay credit cards by 2027, making digital credit more accessible, especially for first-time credit users.

Fintech Startups in India

India’s fintech sector has been growing rapidly, supported by innovations in UPI, digital lending, neobanking, and credit solutions. Startups like Kiwi are focusing on filling the gap between digital payments and credit adoption.

With more people adopting cashless payments, fintech companies are enabling access to financial products for both urban and rural users. This ecosystem is expected to continue expanding, with Credit-on-UPI emerging as a strong driver of future growth.

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