Neo-banking startup Niyo raises $30 million from Multiples Alternate Asset Management
Neobank platformannounced on Tuesday that it has raised $30 million from Mumbai-based private equity firm Multiples Alternate Asset Management Pvt Ltd.
Avendus Capital was the financial advisor for the transaction.
The startup had raised $100 million in a Series C funding round led by Accel and Lightrock India, with participation from Beams Fintech Fund and existing investors Prime Venture Partners and JS Capital. With this round, Niyo raised a total of $130 million this year.
The latest round brings the company’s total fundraising to approximately $180 million ($13.2 million in Series A from Silicon Valley-based Social Capital, Jonathan Soros’ family office, JS Capital LLC, Horizon Ventures and Prime Venture Partners; $35 million in Series B round led by Horizons Ventures and Tencent).
The company said it will deploy the funds to expand product capabilities and increase customer base through organic and inorganic opportunities. Proceeds will also be used to grow the brand and build team strength across all functions, he said in a statement on Tuesday.
Neo-banking platform Niyo Solutions raised $30 million in the latest round
Founded in 2015 by Vinay Bagri and Virender Bisht, Niyo offers digital savings accounts and other banking services in partnership with banks. It claims to serve around four million customers through its banking and wealth management products and processes transactions worth more than $3 billion daily.
It also issues travel and currency cards in partnership with SBM and DCB Bank, and also provides zero-balance prepaid cards for domestic blue-collar workers. With the fundraising, Niyo will soon launch its outward remittance business.
“With this fundraiser, we are focused on improving product development, improving our product line to have more consumer-focused products like credit cards, remittances, loans, etc Our foray into new product categories will help us capitalize on the huge tailwinds for digital financial products. the market sees today,” said co-founder and CTO, Virender Bisht.
“Niyo’s products are designed to deliver superior economic value and a seamless, highly engaging experience for customers. It is amazing that Niyo is able to reach customers with over 16,000 PINs which covers 80% of PINs in India. Vinay and Viren are building Niyo with strong technology and partnership DNA,” said Nithya Easwaran, Managing Director of Multiples.
The private equity firm has backed other startups like Acko, Delhivery, Dream Sports, Licious, and MoEngage, among others.
(The story has been updated with clarifications shared by the Niyo team on the total amount of funding and the existence of the remittance activity.)