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Kiwi Raises $24M to Supercharge UPI-Linked Credit Cards Across India

India’s fintech revolution just got a powerful new push. Bengaluru-based startup Kiwi, known for issuing RuPay credit cards linked directly to UPI, has raised a whopping $24 million in a fresh funding round. The raise was led by Vertex Ventures Southeast Asia and India, with continued backing from Nexus Venture Partners, Stellaris Venture Partners, and the Omidyar Network.

This new funding round brings Kiwi’s total capital raised to $43 million and sets the stage for its most ambitious move yet: launching credit lines on UPI within the next six months.

The Next Big Leap: Credit Lines via UPI

UPI (Unified Payments Interface) has already transformed the way India transacts. With more than 19 billion transactions every month and 350+ million users, it’s the undisputed king of digital payments. But here’s the twist—credit usage on UPI is still in its infancy.

That’s exactly what Kiwi wants to change.

The startup is now gearing up to let users access pre-approved credit limits directly through their UPI-enabled bank accounts. Instead of needing a separate credit card swipe or even a credit card at all, users will be able to make purchases using their credit limit via UPI apps like PhonePe, Google Pay, or Paytm.

This comes after the Reserve Bank of India greenlit credit on UPI in late 2023 — and Kiwi is among the first to build a real-world product around it.

What Kiwi Is Doing Differently

Founded in 2022 by ex-bankers Anup Agarwal, Siddharth Mehta, and Mohit Bedi, Kiwi has carved a unique niche in India’s competitive fintech landscape.

Here’s how Kiwi is different:

• Partnership-Driven: Kiwi issues RuPay credit cards in collaboration with Yes Bank and AU Small Finance Bank.
• UPI-Linked Cards: Unlike traditional credit cards, these are linked to UPI, allowing seamless merchant payments using credit.
• Fast-Growing Footprint: Since its launch in 2023, Kiwi has issued over 200,000 RuPay credit cards and processes 5 million transactions per month across 600 cities.

For consumers, it means getting the flexibility of credit without the friction of plastic cards or lengthy approval processes.

Where the $24M Will Go

Kiwi plans to use the fresh capital to:

• Launch credit lines on UPI – bringing “Buy Now, Pay Later” to everyday UPI payments.
• Expand its partner network by onboarding more banks to issue RuPay credit cards.
• Introduce new features like:
  • Add-ons for credit cards (e.g., spending controls, personalized offers)
  • EMI options for UPI-based transactions
• Scale operations and hit a major milestone: issuing 1 million RuPay credit cards by 2027.

In a statement, the Kiwi team emphasized that their mission is to blend the simplicity of UPI with the power of credit—bringing convenience, flexibility, and better financial access to millions.

Why This Matters for India’s Fintech Space

India has long been a debit-first economy. Despite 1 billion+ debit cards in circulation, credit penetration remains under 5%. Kiwi is positioning itself to change that by merging credit with UPI—something that’s never been done at scale before.

This move could unlock credit access for a massive portion of India’s middle and lower-middle-class population, especially younger consumers who already use UPI daily but don’t own a traditional credit card.

And for banks? Kiwi offers a tech-first distribution channel to issue cards faster and more efficiently without investing in heavy infrastructure.

The Big Picture: UPI is Evolving, and Kiwi Wants to Lead

As UPI evolves from a simple peer-to-peer payment tool to a full-fledged financial ecosystem, Kiwi is betting that credit on UPI is the next massive wave.

Already, we’re seeing signs of that shift. RBI’s policy push is encouraging banks and fintechs to bring innovative credit products to UPI users. Kiwi, with its RuPay card partnerships and deep product pipeline, is right at the forefront of this movement.

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