Flipkart’s fintech arm, Super.money, has joined forces with Kotak811, the digital arm of Kotak Mahindra Bank, to enhance India’s free digital payments ecosystem. This strategic partnership integrates UPI payments, savings, and secured credit to create a unified account aimed at driving profitability through increased usage.
The primary goal of this collaboration is to issue approximately 2 million secured credit cards in the next 12 months, with a focus on first-time borrowers accounting for about 60% of the total. Super.money, with a user base of 10 million active users, anticipates that the partnership with Kotak will contribute around 10% of its revenue next year, as it aims to achieve profitability by 2026 under the leadership of CEO Prakash Sikaria.
India’s Unified Payments Interface (UPI), a government-backed initiative, has democratized instant bank transfers, processing over 19 billion transactions monthly. However, the absence of merchant fees, mandated by regulators including the Indian finance ministry, has posed challenges for fintech companies seeking to monetize their services. Super.money’s approach, leveraging secured cards and savings accounts to reintroduce incentives, presents a blueprint for developing sustainable business models within fee-free payment frameworks.
Launched in 2024 as Flipkart’s foray into fintech following the spin-off of PhonePe in 2022, Super.money has rapidly gained traction, generating a monthly revenue of $3 million and an annualized run rate of approximately $36 million. Positioned as one of India’s top five UPI platforms, the app has consistently processed over 200 million transactions monthly for the past four months.
Source: TechCrunch