Fintech firm Kiwi launches interest-backed EMI on UPI with cashback option

Fintech firm Kiwi is rolling out an interest-backed EMI option on UPI payments, allowing users to split big-ticket purchases into instalments while earning back the interest paid as cashback.

The company claims this model to be the first of its kind in the country.

It said the interest amount will be refunded as cashback, partially or fully, across different tenures such as three, six and nine months.

For instance, a three-month equated monthly instalment (EMI) comes with 100 per cent cashback on interest, while six and nine-month EMIs offer 50 per cent cashback on interest.

The emphasis on EMI-based UPI payments comes amid efforts to expand credit on real-time payment rails.

According to Kiwi, categories such as smartphones, jewellery, appliances and travel are seeing two to three-fold growth during the festive week compared to non-festive months, with more than half of these big-ticket purchases made using EMI or pay-later options.

“EMI on UPI brings together the convenience of UPI and the flexibility of credit. With interest-back EMIs, we are ensuring that consumers can celebrate without financial strain,” said Mohit Bedi, co-founder and chief business officer (CBO), Kiwi.

The credit-on-UPI focused fintech raised $24 million in a Series B funding round led by Vertex Ventures South East Asia and India in August. The round also saw participation from Nexus Venture Partners, Stellaris Venture Partners and Omidyar Network.

Kiwi had earlier raised $13 million in a Series A funding round in November 2023.

The fintech startup now plans to issue one million credit cards over the next two years.

About Kiwi
Founded in 2022, Kiwi is a fintech platform that pioneered the concept of Credit-on-UPI in India. By combining the ubiquity of UPI with the benefits of RuPay credit cards, Kiwi enables customers to access credit seamlessly across millions of merchants. The company is backed by marquee investors including Vertex Ventures SEA & India, Nexus Venture Partners, Stellaris Venture Partners, and Omidyar Network.

About Vertex Ventures Southeast Asia & India
Vertex Ventures Southeast Asia & India is a leading early-stage venture capital firm focused on partnering with high-growth startups across Southeast Asia and India. With a strong network and strategic expertise, they have invested in successful companies such as Grab, FirstCry, Nium, Licious, Kissht, Kuku FM, and PatSnap, driving innovation and scaling businesses across various sectors.

Vertex Ventures Southeast Asia and India invests in high-growth startups seeking their first round of institutional venture capital funding in Southeast Asia and India. It has a long and strong track record of investing in early-stage startups and building global champions.

Like what you are reading? Subscribe to our monthly newsletter for more.

**For the latest news on Vertex Ventures SE Asia and India and our portfolio companies, follow us on Linkedin or **subscribe to our monthly newsletter.