Niyo, a consumer-facing neobank platform in India, has secured $100 million in a new financing round as it tries to expand its lending and insurance offerings and gain a stronger foothold in the world’s second-largest internet market. The Series C funding round for the Bengaluru-based business was co-led by Accel and Light rock India. Existing investors Prime Venture Partners, JS Capital, and Beams Fintech Fund all contributed to the round, bringing the startup’s total funding to around $150 million.
Niyo is an Indian company that offers digital savings accounts and other banking services to mostly salaried people. It collaborates with financial institutions to assist them to provide a more modern and comprehensive user experience and services. It also offers a wealth management service that enables customers to invest in mutual funds and domestic stocks. Zero percent forex markup and “invest the change,” which rounds up a customer’s spending and invests a portion of it, are two of its most popular services.
In an interview with TechCrunch, Niyo co-founder and CEO Vinay Bagri said the company had over 4 million customers across its banking and wealth management solutions. He claims that the majority of his clientele are in their 20s and early 30s.
On a yearly basis, the startup claims to be gaining over 10,000 new members per day and processing over $3 billion in transactions. Since the advent of the epidemic, Niyo’s co-founder and chief technology officer, Virender Bisht, has seen “huge tailwinds for digital financial solutions.” “Our one-of-a-kind product offering ‘NiyoX,’ which was launched less than a year ago, is democratizing the superior digital banking experience for customers and has seen significant user uptake,” he said.
Customers will be able to borrow money from Niyo beginning next month. The loans will be in the region of 70,000 dollars ($930). According to Bagri, while the company expands its offerings, it is also seeking inorganic development through acquisitions. Across India, a slew of entrepreneurs is attempting to revolutionize the banking experience. However, unlike in many other nations, banking in India is quite affordable, which has made it difficult for them to persuade people to make such a significant adjustment.
Customers are mostly offered an “experience layer” by the current generation of neobanks, according to an industry executive speaking to TechCrunch. Many startups, on the other hand, are expecting that India will soon grant them permission to own and operate their own digital-only banks. “We’re thrilled to be partnering with Niyo, India’s fastest-growing neobank. Vinay, Viren, and the rest of the team have created a wonderful product with a clear value proposition for customers, as evidenced by their rapid growth. In a statement, Accel partner Anand Daniel said, “We look forward to partnering with Niyo in revolutionizing the way India banks.”