Alteria invests Rs 95 crore in OneCard through debt financing

Funding Alert

Launch of the first mobile credit card OneCard has secured debt financing of 95 million rupees or $11.44 million from Alteria Capital, marking the second round of such financing recently.

According to regulatory filings, OneCard’s board has approved the issue of 9,500 Series B bonds priced at Rs 1,00,000 each to raise the stipulated amount. According to the securities subscription agreement, the bonds have a maturity of 30 months with an interest rate of 13.85% per annum.

«The debt financing will be used for our business operations,» the filings said.

FPL Technologies, operating as OneCard, focuses on providing co-branded credit primarily to first-time users. It also offers the OneScore app, which allows you to track and manage your credit score.

The company has partnered with banks like IDFC First Bank, Federal Bank, SBM Bank and recently Indian Bank to enable users to control digital credit cards.

“In 2022, we became a unicorn after the Series D round led by Temaska,” the sources confirmed. There were talks of another round of funding of $100 million at a lump sum valuation.

Peak XV holds the largest stake in OneCard with 23.27%, followed by Matrix Partners and QED Holdings. Co-founders Anurag Sinha, Vaibhav Hathi and Rupesh Kumar together own 30% of the company.

“OneCard has seen remarkable growth in the last fiscal, registering a 6.4-fold increase in revenue to Rs 541 crore,” sources said. However, the company also faced a 2.23-fold increase in losses to Rs 406 crore by the end of March 2023.

The co-branded credit card market faces competition from the likes of Tiger Global-backed Slice and Accel-backed Uni, all vying to partner with banks.

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