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Exclusive: Sequoia and Matrix-backed OneCard in talks to raise $100 Mn


Mobile-first credit card company OneCard, owned by FPL Technologies, is in talks to mop up $100 million in a fresh 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 put in the majority of the fund,” said one of the sources on the condition of anonymity. “The company is finalising the terms of the deal which is likely to catapult its valuation over $550 million.” 

OneCard’s existing investors include  Matrix Partners and Hummingbird Ventures.

If this round goes through, OneCard’s valuation will jump 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 users a virtual, cellphone-based card to build a credit score. Currently, it offers its services across 12 cities including Mumbai, Delhi, NCR, and Bengaluru. The company also helps consumers check and monitor their credit score and credit report on a monthly basis through its app OneScore.

Entrackr couldn’t verify the name of new investors participating in the round. Queries sent to OneCard [FPL], Sequoia, Matrix did not elicit any immediate response. We’ll update the story as and when they respond.

Launched by Vaibhav Hathi, Anurag Sinha and Rupesh Kumar, OneCard also enables an equated monthly instalment (EMI) facility for purchases of Rs 3,000 and above at an interest rate of 1.33% with a repayment tenure of 3-24 months.

Last month, OneCard had made strategic partnerships with Federal Bank, South Indian Bank to launch their credit card. Recently, merchant commerce platform Pine Labs also partnered with OneCard to extend its EMI offering.

OneCard competes with 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 few months. According to Fintrackr, it didn’t generate any operating revenue whereas its losses in the FY20 were recorded at Rs 8.3 crore. 

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