Sequoia and Matrix-supported OneCard in talks, around 100 million

Mobile-first credit card company OneCard, owned by FPL Technologies, is in talks to raise $ 100 million in a new round of new and existing investors, according to two sources providing the details of the call are.

This will be the third infusion in 2021 by the Pune-based company, which raised $ 35 million in two tranches in its Series B round led by Sequoia Capital and QED Fund.

“OneCard is in talks about a $ 100 million round in which existing investors will bring in the majority of the fund,” said one of the sources on condition of anonymity. “The company is finalizing the terms of the deal, which will likely propel its valuation above $ 550 million.”

OneCard’s existing investors include Matrix Partners and Hummingbird Ventures.

When this round goes through, OneCard’s rating will triple within 7 to 8 months. Corresponding TrickypediaOneCard’s estimates was estimated at around $ 183 million in its second installment of the Series B round in April of this year.

OneCard offers first-time credit card users a virtual, cell phone-based card to build up a credit score. It currently offers its services in 12 cities including Mumbai, Delhi, NCR and Bengaluru. The company also helps consumers check and monitor their credit scores and credit reports monthly through its OneScore app.

Trickypedia failed to verify the name of new investors participating in the round. Inquiries to OneCard [FPL], Sequoia, Matrix did not trigger an immediate response. We will update the story as soon as they reply.

Introduced by Vaibhav Hathi, Anurag Sinha, and Rupesh Kumar, OneCard also allows for equivalent Monthly Installment (EMI) payments for purchases of Rs 3,000 and more at an interest rate of 1.33% with a payback period of 3-24 months.

Last month, OneCard had strategic partnerships with Federal Bank and South Indian Bank to bring their credit card to market. Recently also the Pine Labs trading platform in partnership with OneCard to expand its EMI offering.

OneCard competes with all banks that issue credit cards.

OneCard generated Rs 1.03 billion in financial income in fiscal year 20, which the company was in operation for a few months. Corresponding Trickypedia, it generated no operating income while its FY20 losses were Rs 8.3 billion.

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