Niyo has secured $100 million in its Series C funding round. The startup will use the money to innovate its products, marketing and branding, among other things.
Niyo, a consumer neo-banking platform, has secured $100 million in a Series C round headed by Accel and Lightrock India, with Beams Fintech Fund participating. This round also included existing investors Prime Venture Partners and JS Capital.
The new funds come after a more than 30-month wait for the Bengaluru-based startup, which raised $35 million in a Series B round in July 2019 from Horizons Ventures, Tencent, and others.
According to a news statement from Niyo, the funds will be used for product innovation, marketing and branding, expanding its distribution reach, and employing top people across divisions.
In collaboration with banks, Niyo offers digital savings accounts and other financial services. The company claims to have over 4 million customers across its banking and wealth management solutions, with over 10,000 new users joining the platform every day.
Niyo has sales offices in over 20 states and presently serves over 7,000 businesses.
Niyo, which was founded by Vinay Bagri and Virender Bisht, has launched a digital salary account this month and is working on launching personal loans, credit cards, integrated FX, and other banking products.
In the past, the company has completed a few acquisitions, including Index, a personal finance startup based in Bengaluru, in June 2021, and Goalwise, a personal finance startup based in Bangalore, in July 2020.
Niyo has not been able to scale its business in terms of revenue despite operating for seven years.
The company’s operating revenue for the fiscal year ended March 31, 2021 fell 4% to Rs 24.30 crore, down from Rs 25.32 crore in FY20.
Service fees accounted for the majority of Niyo’s operational revenue, with support services accounting for Rs 2.8 crore, or 11.6 percent of total operating revenue. In FY21, the company made a loss of Rs 80 crore.