Niyogin Fintech to demerge NBFC and iServeU, plans independent listings

Niyogin Fintech Ltd. has unveiled a major restructuring plan, announcing the demerger of its Non-Banking Financial Company (NBFC) arm and fintech subsidiary iServeU into independently listed entities.

Under the new structure, the NBFC business will be housed under a newly formed subsidiary, Niyogin Finserv Ltd., which aims to scale its lending operations through fintech partnerships.

Meanwhile, iServeU will transition to a Software-as-a-Service (SaaS) model, reducing reliance on pass-through revenue-sharing arrangements and focusing on long-term, recurring income streams.

“I am excited to announce that the Board has approved the proposal for the composite scheme of arrangement and amalgamation among Niyogin Fintech Limited, Niyogin Finserv Limited, and its 51% subsidiary, iServeU. As a result, both the NBFC business, along with associated companies, and iSU will be individually listed," said Tashwinder Singh, CEO and Managing Director of Niyogin Fintech.

Niyogin’s Q3 earnings remained subdued particularly in the Domestic Money Transfer (DMT) segment, which was impacted by tighter KYC regulations.

Assets under management (AUM) grew to Rs 241.8 crore, marking a 2% sequential increase. Total income surged 110% year-on-year to Rs 113.2 crore, with a 55% rise on a quarter-on-quarter basis.

Adjusted total income stood at Rs 60.2 crore, reflecting a 12% increase year-on-year but a 17% decline compared to the previous quarter. The company reported an adjusted EBITDA (Ex-ESOP) loss of Rs 2.0 crore, widening from a Rs 0.5 crore loss in Q2 FY25 and a Rs 1.4 crore loss in Q3 FY24.