[Funding alert] YeLo raises seed round, will launch financial services for India's 'Next Half Billion'
YeLo, a digital-only mobile-first neobank, announced a seed round funding from Matrix Partners India, Omidyar Network India, Flourish and existing investor, Better Capital.
Funds raised will be used to build a local language-based experience - a must-have in order to reach low-income consumers in the country - and to expand the current team to 100 people in the next 12-18 months.
YeLo aims to provide an array of innovative financial products and services aimed at improving financial outcomes to Indians in the segment dubbed as the "Next Half Billion". The idea is to personalise offerings to customer-profiles, such as manufacturing and construction workers, security guards, truck drivers, farmers, and gig economy workers, among others, to provide a wide range of services, from banking and payments to credit and insurance.
In a press release, Nilesh Agarwal, CEO and Co-founder of 0.5Bn FinHealth, which owns the YeLo said,
“While India has progressed significantly in providing financial access to low-income consumers, customer engagement has lagged due to poor service levels or standardised offerings that simply do not meet people's real needs."
Founded in 2018 by classmates Nilesh Agarwal and Abhishek Challa, YeLo also focusses on serving mass market consumers with a custom-made suite of financial products to satisfy life-needs such as remittance, healthcare, education, ecommerce, and day-to-day cash flow management.
“The power of YeLo lies in personalising and curating relevant financial services offerings that address people's real needs and risks in affordable packages priced under Rs 50," Abhishek Challa, Co-founder of 0.5Bn FinHealth said.
Despite having close to one billion debit cards in India, the lack of usage in half of them represents a significant opportunity to drive financial wellness through higher engagement products, the company said in a press release.
“The suite of products are specifically designed to meet the requirements of the mass market consumer in India is the need of the hour to bring financial inclusion to the “Digital India” vision,” Avnish Bajaj, Founder and Managing Director, Matrix Partners India said.
(Edited by Suman Singh)