The bank card trade in India seems to be caught. In line with trade estimates, between 30 million to 35 million folks within the nation at this time have no less than one bank card, with as much as 58 million being in circulation. Evaluate this to nearly 1 billion debit playing cards.
One purpose the overwhelming majority of the inhabitants has not made the minimize is as a result of they don’t have a credit score rating. And so few folks have a credit score rating as a result of banks and bank card firms nonetheless depend on age-old methodologies to find out somebody’s creditworthiness. For instance most banks in India are solely comfy issuing bank cards to people who’ve full-time employment with one of some hundred firms listed in dated spreadsheets the banks keep.
Nitin Gupta, by his new startup Uni, needs to handle a few of these points. And he is without doubt one of the few people within the nation who’s positioned to do it. He co-founded PayU India, after which ran ride-hailing agency Ola’s monetary companies enterprise.
Throughout his tenure at PayU, the startup established a dominance within the funds processing enterprise within the nation. And at Ola, he launched Olamoney Postpaid, a service that enables clients to pay for his or her rides at a later stage. Olamoney, which was valued at $250 million final 12 months, is now one of many largest monetary companies companies within the nation.
Critical VCs are actually prepared to guess on Gupta’s new enterprise.
On Tuesday, Uni introduced it has raised $18.5 million in its seed financing spherical led by Lightspeed and Accel . The startup presently doesn’t have a product, nevertheless it took Gupta solely two months in the midst of a worldwide pandemic to boost what is without doubt one of the largest seed financing rounds in India.
Jayanth Kolla, founder and chief analyst at consultancy agency Convergence Catalyst, stated, an “$18.5 million seed funding for a two-month outdated startup with out even a product or an MVP but — foundation purely on the founder’s credentials and historical past — is the primary occasion of a pure-play Silicon Valley kind funding in India.”
In an interview with TechCrunch, Gupta stated at Uni he’s joined by two extra senior executives — Laxmikant Vyas and Prateek Jindal — who’ve stellar data within the monetary companies enterprise.
He declined to disclose what precisely Uni’s product — or line of merchandise — would appear to be, however steered that Uni is constructing the fashionable age client bank card.
“It will appear very apparent when it comes out, and other people will surprise why no one else considered it,” he stated, including that he’s working with a number of banks on partnerships.
The adoption of digital funds has grown exponentially within the nation within the final 5 years, however the bank card enterprise continues to be struggling to make inroads, he stated, including that he sees a chance to broaden the bank card base to 200 million over the following 5 years.
“Nitin and Uni’s crew are captivated with unlocking the facility of monetary companies for tens of millions of Indian shoppers utilizing new tech-powered options,” Bejul Somaia, a accomplice at Lightspeed India, stated. “We’re enthusiastic about their mission and proud to assist them from day one.”