Neobanking startup Niyo raises $30M from Multiples Alternate Asset Management

Neobanking platform NIYO SOLUTIONS on Tuesday said it has raised $30 million from Mumbai-based private equity firm, Multiples Alternate Asset Management Pvt Ltd. 

Avendus Capital was the financial advisor on 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 has raised a total of $130 million this year. 

The latest round takes the company's total fundraise to approximately $180 million ($13.2 million in Series A round from Silicon Valley-based Social Capital, the family office of Jonathan Soros, 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 the customer base through organic and inorganic opportunities. The proceeds will also be used for brand building and bolstering team strength across functions, it said in a statement released on Tuesday. 

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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 be serving around four million customers across its banking and wealth management products and daily processes transactions worth over $3 billion.

It also issues travel and forex cards in partnership with SBM and DCB Bank, and also provides zero-balance prepaid cards for domestic blue-collar workers. With the fund raise, Niyo will soon launch its outward remittance business.

“With this fundraise, our focus is on enhancing product development, improving our product suite to have more consumer-focused products like credit cards, remittances, loans etc. Our foray into new product categories will help us leverage the massive tailwinds for digital financial products the market is seeing today," said Co-founder and CTO, Virender Bisht.

“Niyo’s products are designed to deliver superior economic value and a frictionless, highly engaging experience to customers. It’s amazing that Niyo is able to reach customers in 16,000+ pin codes which cover 80 percent of the pin codes in India. Vinay and Viren are building Niyo with a strong technology and partnership DNA,” said Nithya Easwaran, Managing Director Multiples.

The private equity firm has backed other startups like Acko, Delhivery, Dream Sports, Licious, and MoEngage, among others. 

(The story was updated with clarification shared by the Niyo team on the total funding amount and the existence of the remittances business.)