Bengaluru-based fintech start-up Uni has raised USD 70 million in Series-A funding round led by General Catalyst, with participation from Eight Roads Ventures, Elevation Capital, Arbor Ventures and existing investors Lightspeed and Accel.

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The funds will be utilised to scale up the team, launch new products and invest further in technology to redefine consumer experience, the start-up's co-founder and Chief Executive Nitin Gupta said.

Including the latest funding round, Uni has raised USD 88.5 million so far from marquee investors like General Catalyst, Eight Roads, Elevation Capital, Light Speed and Accel. Its previous round was in October when it had earlier raised USD 18.5 million in the seed round.

Uni aims to bring in a range of credit products starting with its 'pay later' card, 'Pay 1/3rd' card. With the new round of funding, Uni targets to hit monthly disbursals of Rs 1,500 crore next year, having already hit Rs 175 crore in monthly disbursals within six months of the launch in June 2021.

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Uni was founded by Nitin Gupta, Prateek Jindal and Laxmikant Vyas, who previously held leadership positions in the financial sector players like PayU, Bajaj Finserv and Ola Financial Services.

Pay 1/3rd card is one of the fastest-growing pay-later cards currently. It is the country's first pay-later card that automatically splits every transaction into one-third, allowing consumers to pay their monthly spends in three parts over three months for no extra charges and also a one-month interest-free credit period.

Uni is already present in 50 cities and is targeting to add 50 more cities in the next quarter.

Consulting firm RedSeer estimates that the buy-now-pay-later market will zoom to USD 45-50 billion by 2026 from USD 3-3.5 billion now and the customer base to 80-100 million from 10-15 million now.

General Catalyst is a venture capital with offices in San Francisco, Palo Alto, New York City, London, and Boston. It has helped businesses like Airbnb, Hubspot, Lemonade, and Samsara, among others. Eight Roads Ventures is a global investment firm backed by Fidelity and manages USD 8 billion of assets across Asia, Europe, Israel and the US, with a focus on technology, healthcare and consumer.