Bengaluru-based fintech Kiwi has raised $24 million in a new funding round to expand its RuPay credit card business in India. The startup issues RuPay credit cards in partnership with banks, aiming to bring formal credit to more customers across cities and towns.
What Kiwi plans to do with the funds
Kiwi will use the capital to speed up product development and widen its bank partnerships. Key focus areas include:
- Faster onboarding and instant approvals
- Stronger fraud checks and data security
- Expansion into Tier 2 and Tier 3 markets
- Better customer education and support in local languages
The move comes as RuPay grows in popularity among Indian users, partly due to wider acceptance at merchants and the National Payments Corporation of India (NPCI) push for a homegrown payments network.
Why this matters for Indian consumers
Many Indians still lack easy access to credit cards because of thin credit histories. Kiwi’s model works with banks to issue cards to customers who may not fit traditional credit scoring but show real earning potential.
That means more consumers can get a card, build credit history, and use digital payments for shopping, travel and everyday spends. For small retailers and online sellers, increased card usage can mean higher sales and smoother digital transactions.
Market context and trends
India’s digital payments ecosystem is evolving fast. Government and regulators have encouraged local networks like RuPay, while banks and fintechs are teaming up to reach underserved populations.
Kiwi’s partnership-led approach reflects a larger trend: collaboration between banks and fintech startups to deliver tailored credit products. This helps combine banks’ compliance reach with fintech speed and customer-first design.
What to watch next
Keep an eye on how quickly Kiwi rolls out new bank tie-ups and enters smaller cities. Customer experience and security will be critical as more first-time cardholders come on board.
For Indians looking for a first credit card, RuPay options backed by credible banks could become a trusted entry point. If Kiwi executes well, it could help simplify credit access for millions and push India’s financial inclusion goals further.