Fintech Startup Uni New Funding Round Planned at 70% Lower Valuation Amid Sector Challenges

 Credit card-focused fintech startup Uni is exploring a fresh funding round at a sharply reduced valuation, reflecting the broader pressure faced by digital lending platforms in India due to regulatory tightening and business model disruptions. 

Funding Plans and Valuation Reset 

The Bengaluru-based company is in discussions to raise approximately $18 million, with Nandan Nilekani-backed Fundamentum expected to lead the round alongside participation from existing investors. The proposed deal could value the company at around $95 million post-investment, a steep correction from its earlier valuation of about $350 million. 

This marks a decline of more than 70%, driven largely by a slowdown in Uni’s lending operations and the impact of regulatory changes that have reshaped the fintech ecosystem. Industry observers note that such shifts have significantly affected business continuity for platforms operating in the consumer credit space. 

Uni’s cofounder and chief executive Nitin Gupta stated that the company continues to issue over 40,000 credit cards every month, although he refrained from commenting on the ongoing funding discussions. 

Business Model Shift and Operational Changes 

Originally positioned as a provider of quick credit through buy-now-pay-later offerings and personal loans, Uni has gradually transitioned its focus towards credit card distribution. The company now partners with Bob Card and Yes Bank to offer co-branded credit cards that provide cashback benefits, with rewards redeemable in the form of gold. 

Uni has halted new loan disbursals and is currently managing only its existing borrower base. Earlier, it worked with non-banking lenders and peer-to-peer platforms such as Liquiloans and Lendbox. It had also acquired OmlP2P in April 2023 to expand its lending capabilities, but the segment failed to scale as regulatory changes tightened oversight in the sector. 

At present, the company operates primarily as a card distribution platform while continuing to service legacy lending portfolios. 

Regulatory Impact and Financial Performance 

A series of policy changes over the past few years has significantly altered the operating landscape for fintech companies like Uni. In 2022, restrictions on credit lines linked to prepaid instruments affected several players, including Uni. Later, tighter norms around data sharing between banks and fintech partners in co-branded credit card arrangements limited operational flexibility. 

Further changes in 2024, particularly in the peer-to-peer lending segment, slowed down that business line, impacting Uni’s expansion efforts after its OmlP2P acquisition. Market participants have pointed out that without data-sharing capabilities, fintech partners are reduced to functioning largely as distribution channels, which constrains both growth potential and valuation. 

From a financial standpoint, Uni reported revenue of ₹95 crore in FY25 with a net loss of ₹151 crore, compared to ₹100 crore revenue and ₹167 crore loss in FY24. The company has raised a total of $104 million to date, including a $70 million Series A round in 2021 led by General Catalyst, with backing from investors such as Accel and Lightspeed. 

Founded in 2020 by Nitin Gupta, along with Laxmikant Vyas and Prateek Jindal, the company has undergone leadership changes as well, with Jindal exiting in 2024 to launch wealthtech venture Powerupmoney. 

Read More: Fintech Startups in India Raise $2.4 Billion in CY25, Amid Cautious Investor Sentiment! 

Conclusion 

Uni’s valuation reset and strategic pivot highlight how regulatory developments are reshaping India’s fintech landscape, forcing companies to adapt their models while navigating constraints on lending and data-driven growth. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.