NiYO, a fintech startup offering neo-banking solutions has announced that it has raised fresh funds to the extent of $35 million. This is part of the Series B funding for the company and the key investors in this round are Horizons Ventures and Tencent and existing investor JS Capital too has participated in this round of fundraising.
With this, the total funds raised by the startup adds up to $49 million, the last tranche of funding being $14 million.
NiYO has managed to build a customer base of 1 million and wants to scale it up to 5 million going forward. The lending model NiYO follows is to cater to that section of the workforce, usually referred to as the blue-collar employees, whether in the organized or unorganized sector. These are the people generally left out of the mainstream lending and other financial products like insurance etc. NiYO used the salary as the basis for the lending and applies its own proprietary technology to evaluate the applications for financial assistance.
The funds now raised will be spent on developing new products and to expand the market for their products. The company has plans to explore the international markets too and take its neo-banking concept to some of the deserving countries.
The existing investors and the new ones have expressed their confidence in the startup and have reposed faith in the founders of NiYO, Vinay Bagri and Virender Bisht, who have the requisite experience in banking and technology.
Coming back to the major product offering from NiYO, it is called Bharat Payroll Solution, and encompasses a holistic financial solution package that includes savings, payments and investments. Where required, the employees are helped with loan products as well.
The other niche area that NiYO wants to tap into is the issue of an international credit card called the NiYO Global Card. The target customers will be from among the 26 million Indian travellers who undertake foreign tours for business or for leisure. NiYO sees a vacuum in this space right now.