Mobile-first credit card company OneCard, possessed by FPL Technologies, is in talks to wipe up $100 million in a new round from new and existing investors, according to two sources aware of the details of the conversation.
This will be the third infusion in the Pune-based company in 2021 which had raised $35 million in two tranches in its Series B round led by Sequoia Capital and QED Fund.
“OneCard is in talks raising a $100 million round where existing investors will place in the majority of the asset,” said one of the sources on the state of anonymity. “The company is finalizing the conditions of the deal which is probably going to catapult its valuation more than $550 million.”
OneCard’s existing investors include Matrix Partners and Hummingbird Ventures.
If this round goes through, OneCard’s valuation will hop around 3X in a matter of 7 to 8 months. According to Fintrackr’s estimates, OneCard was valued at around $183 million in its second tranche of Series B round during April this year.
OneCard offers first-time credit card clients a virtual, cellphone-based card to construct a credit score. Presently, it offers its administrations across 12 urban communities including Mumbai, Delhi, NCR, and Bengaluru. The company also assists buyers with checking and monitor their credit score and credit report consistently through its app OneScore.
Entrackr couldn’t check the name of new investors participating in the round. Questions shipped off OneCard [FPL], Sequoia, Matrix didn’t get any immediate reaction. We’ll update the story as and when they react.
Launched by Vaibhav Hathi, Anurag Sinha and Rupesh Kumar, OneCard also enables an equated regularly scheduled payment (EMI) facility for purchases of Rs 3,000 and above at an interest rate of 1.33% with a repayment residency of 3 two years.
Last month, OneCard had made strategic partnerships with Federal Bank, South Indian Bank to launch their credit card. As of late, merchant business platform Pine Labs also partnered with OneCard to broaden its EMI offering.
OneCard rivals all banks that issue credit cards.
OneCard earned Rs 1.03 crore as financial income in FY20 in which the company was operational for a couple of months. According to Fintrackr, it didn’t generate any operating income whereas its misfortunes in the FY20 were recorded at Rs 8.3 crore.
