OneCard, Fintech Unicorn, Secures INR 95 Cr Debt from Alteria Capital

Fintech unicorn OneCard has successfully secured INR 95 Cr ($11.44 Mn) in debt capital from venture debt fund Alteria Capital.

The company’s board passed a special resolution to issue 9,500 non-convertible debentures (Series B Debentures) with a face value of INR 1,00,000, aiming to raise the specified capital for business operations. The debentures, with a tenure of 30 months, carry an annual interest rate of 13.85%, as per regulatory filings.

OneCard’s Business Model and Partnerships

Founded in 2018 by Anurag Sinha, Rupesh Kumar, and Vibhav Hathi, OneCard operates by offering a co-branded credit card in collaboration with banks such as Federal Bank and Bank of Baroda Financial. Additionally, the platform provides credit card-related services, including credit score checks and an expense management application. Notable backers of OneCard include Peak XV Partners, QED Holdings, and Hummingbird.

Utilization of Fresh Capital and Financial Performance

The newly acquired debt capital will be deployed for supporting OneCard’s ongoing business operations. In the financial year ending March 31, 2023, the fintech reported a significant increase in operating revenue, reaching INR 541.1 Cr, marking a 6X growth compared to the previous fiscal year. However, the company’s net loss more than doubled in the same period, totaling INR 405.6 Cr in FY23, a 122% increase from INR 182.7 Cr in FY22.

OneCard’s Growth Trajectory and Unicorn Status

OneCard achieved unicorn status in July 2022 after securing $100 Mn from Temasek. The company faces competition from other players in the sector, including Slice, Karbon Card, Uni Card, and Kodo Card. Last year, OneCard reportedly applied for an NBFC (non-banking finance company) license, a strategic move that could facilitate its expansion into the personal loan segment.

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