FPL Technologies raises $75 million at $750 million valuation

The round was led by existing investors – QED Investors, Janchor Partners, Sequoia Capital India, Matrix Partners and Hummingbird Ventures.

The company now plans to use the proceeds from the fresh raise to double its team strength, hire across marketing and engineering functions, scale its existing line of products as well as look at geographic expansion.

The current funding comes just 10 months after the company raised its Series B funding of $35 million, it said. With this round, FPL Technologies has raised a total of $125 million in equity funding since inception.

Founded in 2018, FPL Technologies operates digital credit score platform, OneScore, and has a total of 10 million registered users, utilising the solution. Its key offering includes physical and virtual credit card, OneCard, which it issues in partnership with banks.

It had launched the OneCard offering in June 2020, in midst of the covid-pandemic.

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The startup has partnered with close to five Indian banks including Federal Bank, South Indian Bank, SBM India as well as IDFC Bank to name a few. It looks to add another 4 banking partners in the coming months.

Currently, FPL Technologies has 250,000 OneCard customers, and facilitates close to Rs 450 crore in spends on a monthly basis, across its user base. It looks to scale issuances to 1 million cards by the start of October, this year.

Unlike several other ‘buy now pay later’ card issuers, such as Uni, Slice and LazyPay, FPL Technologies claims that it works directly with banks to issue these cards and disburse credit, instead of working with non-banking finance companies (NBFCs).

“There is a large market for credit cards, with 80 million to 90 million Indians eligible to have a credit card. That is why our investors are excited about the opportunity. Currently, most of our customers come from our OneScore engine and already have a credit history. We will be focussed on scaling our product portfolio over the next 6-8 months,” said Anurag Sinha, co-founder and CEO, FPL Technologies in an interaction with ETtech.

Sinha added that the company continues to be in talks with new investors to raise its next round.

FPL Technologies also launched its secured lending product OneCard Secured, three months back, as it looks to rope in ‘new to credit’ customers. The product, which was launched in association with SBM India, allows users to get credit against their fixed deposits.

Average credit lines for FPL’s OneCard secured lending product stands at roughly Rs 25,000. For its unsecured lending product, credit line limits can go all the way to Rs 1 lakh, Sinha said.