Mutiples commits $30m to India neo-banking platform
Multiples Alternate Asset Management has invested USD 30m in India-based neobank Niyo, entering on the heels of a USD 100m Series C round that closed in February.
The company, which has now raised more than USD 180m to date, said it would use the proceeds to expand its product capabilities and grow its user base, organically and through M&A. There will also be investment in brand building and recruitment.
The Series C was led by Accel Partners and Lightrock India, with support from Beams Fintech Fund, Prime Venture Partners, and JS Capital. Beams Fintech is a growth vehicle backed by local incubator Venture Catalyst, while JS Capital, is the family office of Jonathan Soros, son of George Soros.
Prime was Niyo’s earliest institutional investor, providing USD 1m in seed funding in 2016, according to AVCJ Research. It re-upped in a USD 13.5m Series A that also featured Horizons Ventures, JS Capital, and Social Capital. Horizons then led a USD 35m Series B in 2019, with participation from Tencent Holdings and Social Capital.
Founded in 2015 by Vinay Bagri and Virender Bisht, Niyo claims to be India’s largest consumer neo-banking platform. It provides digital savings accounts and other banking services in partnership with traditional banks, operating through a sales presence that spans 20 states and union territories.
Niyo serves about 4m customers and 7,000 companies across its banking and wealth management products, with more than 10,000 new users added to its platform every day. The service is said to process USD 3bn of transactions a year. On closing the Series C, the company said it wanted to expand its user base to more than 30m.
Current products include digital salary and savings accounts offered in partnership with Equitas Small Finance Bank, travel services and foreign exchange cards with SBM Bank, a wealth management robo-advisory app for investing in mutual funds and stocks, and pre-paid zero-balance bank cards aimed at blue-collar employees.
“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-plus pin codes which cover 80% of the pin codes in India. Vinay and Viren are building Niyo with a strong technology and partnership DNA,” said Nithya Easwaran, a managing director at Multiples.
Avendus Capital served as financial advisor to Niyo on the latest investment.
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