Indian start-up First Principles Labs Technologies (FPL Tech) has raised $4.5m in its maiden round of funding.
The start-up secured the investment from Matrix Partners India and Sequoia India, as is gears up to launch its credit card offering.
FPL Tech is working to partner with a local lender to offer credit cards.
FPL Tech cofounder and CEO Anurag Sinha was quoted by The Economic Times as saying: “We believe there are another 60-65 million customers who have a good credit score who have taken loans and repaid in the past, but do not have a credit card; we can cater to that market.
“In India, the regulator does not allow credit cards to be issued independently by non-banks, hence we are in the final stages of stitching a partnership with a major bank.”
He also told the publication that the investment will be used to bolster its product portfolio and expand its team. It also intends to utilise a part of the funding to acquire new customers.
Two months ago, FPL Tech launched OneScore App to enable credit tracking. The app currently has around 100,000 users.
Sinha confirmed that initially it aims to target these users with the credit card product.
Recently, the credit card market in India witnessed heightened activity with several financial institutions launching their products.
In the last one month, HDFC Bank, Standard Chartered and payments platform Freecharge launched credit card offerings.