Exclusive: OneCard to raise debt from Alteria

Mobile-first credit card startup OneCard is raising Rs 40 crore (approximately $4.5 million) in debt funding from existing investor Alteria Capital.

This debt funding follows the company’s $28.5 million round raised last December from QED Investors, Better Tomorrow Ventures, Peak XV and Z47 which valued the company at $1.4 billion post-money, as exclusively reported by Entrackr.

The board at OneCard has passed a special resolution to approve the issue of 4,000 non-convertible debentures (NCDs) at a face value of Rs 1 lakh each to raise the above-mentioned amount, according to its filing with the Registrar of Companies (RoC).

The said debentures carry an interest rate of 13.85% per annum with a tenure of three years.

Founded in 2019, OneCard (FPL Technologies) provides co-branded credit cards, largely aimed at first-time users, through partnerships with IDFC First Bank, Federal Bank and SBM Bank. It also runs OneScore, an app for credit score tracking and credit management.

According to startup data intelligence platform TheKredible, OneCard has raised over $270 million to date, including the $100 million round in July 2022 when it became a unicorn.

On the financial front, the fintech unicorn recorded more than 2.6X year-on-year revenue growth in FY24, reaching Rs 1,426 crore, while losses stood at Rs 401 crore during the period. It is yet to disclose its FY25 numbers.

Recently, OneCard came under the Reserve Bank of India’s (RBI) scrutiny, with the regulator reportedly asking its partner banks to halt the issuance of co-branded credit cards. The RBI is said to be seeking greater clarity on how data is shared between OneCard and its banking partners.