Fintech startup Uni has raised $18.5 million in a funding round led by Lightspeed and Accel. The company, led by Nitin Gupta, former CEO of Ola Financial Services and co-founder and CEO of PayU India, has seemingly bagged one of India's largest seed rounds.
The company said that the credit cards market in India is still under-penetrated as compared to digital payments, with 34 million credit card users having 58 million credit cards, whereas there are over 100 million Indians who pay digitally and electronically. With Uni, the company is hoping to bridge the gap for credit cards and make them more accessible for consumers across different regions.
“Over the last five years, we have witnessed a 3x acceleration of digital and electronic payment platforms, however, the share of credit card payments has fallen drastically. There is an opportunity to expand the market from 58 million credit cards in India today to 200 million over the next five years by building new products, catering to underserved customer needs and getting new customer segments," said Gupta.
Bejul Somaia, Partner, Lightspeed India Partners said, "Nitin and Uni's team are passionate about unlocking the power of financial services for millions of Indian consumers using new tech-powered solutions. We are excited about their mission and proud to support them from day one."
Prayank Swaroop, Partner at Accel India noted, "Credit cards is a very large and exciting market. It has over $100 billion in annual spends and still less than 2.5% of the Indian population has a credit card today. The opportunity in front of us is truly immense."
In his previous role, Gupta was responsible for starting and scaling PayU India into one of India's largest payment gateways. At Ola Financial Services he transformed the captive Olamoney wallet into one of the leading financial services companies running India's largest pay later service Olamoney Postpaid. In terms of the founding team joining hands with Gupta is Prateek Jindal who built Olamoney postpaid and Laxmikant Vyas who was the head of risk for EMI cards business and was the head of data science at Bajaj Finance.