Indian pay-later cards startup Uni has temporarily suspended its card services in the South Asian market following the local central bank’s guidelines on digital lending, it said in a notice to users seen by TC, in a move that will impact millions of users.
“This means your card will be inactive for now. We are working with our banking partners to resume the card services as soon as possible and will keep you posted. However, there will be no change to your billing and repayments,” wrote the startup, which is valued at $350 million, in the notice.
Uni, which is backed by General Catalyst, Elevation Capital and Lightspeed Venture Partners, confirmed in a statement to TC that it is suspending card services on its products – the Uni Pay 1/3rd Card and the Uni Pay 1/2 Card — and expects to roll out the change to entire customer base by Monday.
The move follows SBM Bank India, which partners with several Indian fintechs to launch co-branded cards, informing Uni and a number of other startups earlier this month to halt onboarding new customers, Indian news outlet MoneyControl reported.
This is a developing story. More to follow…
