Fintech-focused global venture capital firm QED Investors on Friday said it has led a $25.5-million round of funding in FPL Technologies, which offers credit cards to customers through its fintech firm OneCard.
While QED invested $15 million in the round, other investors BTV Ventures, Peak XV, and Z47 also participated.
Founded in 2019, OneCard offers a slew of co-branded credit cards through its tie-ups with banks such as IDFC First Bank, Federal Bank, and SBM Bank. It allows users to manage credit cards seamlessly through its app, thereby integrating functions such as transactions, rewards, offers, credit on UPI, etc.
The funding round will allow FPL Technologies to strengthen its technology infrastructure, resulting in faster, more secure, and scalable solutions for its customers. It will drive the development of new products by collaborating closely with regulated entities designed to cater to a broader spectrum of individual customers, addressing specific needs within the lending market, the firm said in a statement.
“With this funding, we are focused on scaling our offerings and deepening our partnerships as we work towards reshaping how credit is delivered and experienced, and creating a deeper impact in the financial ecosystem by driving greater inclusion and accessibility.” Anurag Sinha, co-founder and CEO of FPL Technologies, said.
FPL Technologies’s funding comes amid a rise in investor interest in the financing services sector.
The financial services industry, comprising banking, mortgages, credit cards, and digital payment startups, led PE-VC funding in October with total investments worth $274.5 million, or 24.5% of the total funding value in the month. The capital was raised through 11 deals. In comparison, financial services raked in $454.5 million from 18 deals in September.
“India’s financial services sector is at a pivotal moment given the compelling macroeconomic story, rising disposable incomes, a progressive regulatory environment, and exceptional talent pool. Despite these advancements, the industry remains under-penetrated, presenting significant opportunities for innovation and expansion,” Sandeep Patil, partner and head of Asia at QED Investors, said.
Other prominent deals within financial services include digital lending platform Fibe ($90 million), non-bank lender Ambit Finvest ($83 million), non-bank lender Northern Arc ($80 million), affordable housing finance company Ummeed Housing Finance ($76 million), NBFC Vivifi India Finance ($75 million), micro-financier Annapurna Finance ($72 million), and digital lending platform mPokket ($60 million).
Last year, QED Investors closed its eighth venture fund (QED Fund VIII) at $650 million and its second growth fund (QED Growth II) at $275 million — both above their respective targets of $600 million and $250 million.
Within APAC, Emerging Asia, which includes Southeast Asia and India, is an important investment theme for the new vehicles, Patil told DealStreetAsia last year.
Its India portfolio comprises Jupiter, Upswing, Refyne, and Financepeer.
