The funding is expected to value FPL Tech at around $1.4 billion, people aware of the fundraising talks told ET on condition of anonymity.
This is almost double the valuation of $750 million when it last
raised $75 million as part of its Series C funding round in January.
In an extraordinary general meeting held on July 11, the company’s board passed a resolution to issue 10 equity shares and 2,68,891 cumulative, non-redeemable, mandatorily and fully convertible Series D preference shares, each at a premium of Rs 29,813.62 per share.
The final round is expected to close later this month, the sources said.
Singapore’s Temasek, through MacRitchie Investments, is leading the round and has invested around Rs 375 crore ($46.9 million) in the company, according to the filings.
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Existing investors Sequoia Capital, Matrix Partners, Hummingbird Ventures, and QED Investors also participated in the funding round.
News website Entrackr was the first to report the development on Wednesday.
The Reserve Bank of India (RBI) has been looking to actively regulate the space and released issuance and conduct directions for debit, credit and co-branded cards in April.
Founded in 2019, 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 launched OneCard in June 2020.
The startup has partnered with
, , SBM India as well as Bank and is looking to add four banking partners in the coming months.
As of January, FPL Technologies had 250,000 OneCard customers, and was facilitating close to Rs 450 crore in spends monthly across its user base. It had plans to scale issuances to one million cards by October.
Unlike several other ‘buy now pay later’ (BNPL) card issuers such as Uni, Slice and LazyPay, FPL Technologies works directly with banks to issue these cards and disburse co-branded credit cards, instead of working with non-banking financial companies (NBFCs).