Credit card as a service platform Hyperface on July 13 raised $9 million in seed funding led by 3one4Capital and joined by existing investors including Better Capital and Global Founders Capital.
The company also added investors like Flipkart Ventures, Groww, and Rebalance Angel Community, in this round of funding.
Hyperface said it will use the funds to strengthen its product and build a strong team. The company, over a year old, currently has a workforce of about 30 and plans to double the strength in the coming six to eight months, cofounder Aishwarya Jaishankar told Moneycontrol. She added the funds will also be used for product innovation and business development.
Hyperface was founded in 2021 by ex-banker Jaishankar and Ramanathan RV, former co-founder of Juspay.
"Hyperface is deeply committed to the idea of embedded finance and to accelerate credit inclusion in India," said RV, who is also chief executive officer of Hyperface.
According to the company, the launch of a credit card programme today takes somewhere up to 12-18 months for businesses. Hyperface said it takes away all the technical grunt work of back-end application programming interface (API) integrations and red tape to reduce time-to-launch by about 10 times.
Jaishankar added, “With the RBI (Reserve Bank of India) tightening the plugs, we are seeing very healthy demand for our credit card stack from fintechs as well.”
Jaishankar’s comments come after a recent clarification sent to fintech players by the RBI that barred the loading of credit lines into prepaid payment instruments (PPIs) like prepaid cards and wallets, a move that came as a blow to business models of players like Slice, Uni, Kreditbee, PayU’s LazyPay, and so on.
Given RBI's clarification, one of the options for these fintechs will be to move to a pure credit card from PPIs. Moneycontrol had reported on July 1 that LazyPay is already in talks to move to credit cards.
Pranav Pai, managing partner at 3one4 Capital, said “Credit card programme management is a uniquely valuable fintech vertical that brings together multiple stakeholders to support differentiated user experiences. The team at Hyperface has channelled their deep domain expertise to build the definitive platform in the space.”
Hyperface said it has recently launched an AU LIT card, a customisable credit card in partnership with AU Bank. The LIT card has been powered by a proprietary innovation of Hyperface which allows credit card issuers and cobrands to construct the right value proposition for their customers, the company added.The company has previously raised investments from prominent angels including Kunal Shah, Amaara Capital, GFC, and Better Capital.