The new funding in the company founded by PayU India cofounder Nitin Gupta was led by General Catalyst. Venture funds like Eight Roads Ventures, Elevation Capital and Arbor Ventures have joined as new investors.
Existing investors Lightspeed and Accel India also participated in this round, post which the Bengaluru-based startup is now valued at $350 million compared with just about $45 million a year ago. Gupta said he will use the new funds to launch more products and scale monthly disbursements through its Uni cards.
In September, CredAvenue had raised $90 million in the largest Series A funding round for an Indian startup.
“Uni card is our first product. There are four more products in the pipeline that will be launched in the next year. It will again be a combination of rewards, repayment period and so on. We are looking to launch a credit card too,” he said.
Uni, just over a year old, had raised $18.5 million in one of the largest seed rounds last year from Lightspeed and Accel India.
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Uni essentially allows users, typically with existing credit scores, to make purchases through its card and they can pay it in three instalments at no cost. If one chooses to take more than three months, they can opt for EMIs or late fees while making the payments. Uni, through the new products that are in the pipeline, will also look to tap into the new-to-credit userbase, Gupta said.
According to him, the company has seen fast adoption among users as it was disbursing around Rs 80 lakh a month six months ago which now stands at around Rs 175 crore. “The aim is to hit monthly disbursals of Rs 1,500 crore by September next year,” he added.
Another company in the same space is new-age credit card startup Slice, which became a unicorn last month after raising $220 million led by Tiger Global and Insight Partners.
Uni, Gupta said, will use the new capital also to grow its user base, spend on marketing and essentially grow faster while launching new products.
“There are few countries in the world where the opportunity for credit expansion is as massive as in India, and we believe some iconic companies will be built to capture this opportunity in the next decade. We are excited to back a team (Uni) that is world-class on credit, risk and payments while also being hyper focused on product and customer delight,” said Alex Tran, managing director at General Catalyst.