Exclusive: OneCard raises Rs 95 Cr debt from Alteria

Mobile-first credit card startup OneCard has raised Rs 95 crore or $11.44 million in debt from Alteria Capital. This is the second round of debt funding for the company in the past few months.

The board at OneCard has passed a special resolution to issue 9,500 Series B debentures at an issue price of Rs 1,00,000 each to raise Rs 95 crore, its regulatory filings with the Registrar of Companies show.

The tenure of debentures will be 30 months and entitled to an interest rate of 13.85% per annum according to the securities subscription agreement. The debt funding will be used by the company for business operations, filings further added.

OneCard (FPL Technologies) offers co-branded credit to mostly first-time users and has a credit score tracking cum credit management app called OneScore.

It offers co-branded credit cards in collaboration with banks such as IDFC First Bank, Federal Bank, and SBM Bank. In Sept 2023, the firm announced its partnership with Indian Bank to empower users with full digital control over their credit card interactions ranging from real-time transaction tracking, spending management, EMI conversion et al.

The company turned unicorn in 2022 after raising over $100 million in a Series D round led by Temasek. As per Entrackr’s sources, OneCard was in talks to raise a new round to the tune of $100 million at a flat valuation.

According to the data intelligence platform TheKredible, Peak XV is the largest stakeholder with 23.27% followed by Matrix Partners and QED Holdings. Its co-founders including Anurag Sinha, Vaibhav Hathi, and Rupesh Kumar cumulatively command 30% of the company.

The Pune-based company grew at a scorching pace in the last fiscal year and its revenue from operations surged 6.4X to Rs 541 crore. Meanwhile, OneCard’s losses spiked 2.23X to Rs 406 crore in the fiscal year ending March 2023. It competes with Tiger Global-backed Slice and Accel-funded Uni which offers co-branded credit cards with banks.