NiYO Options, a Bangalore-based “neo-bank” that helps salaried workers and blue-collar employees entry firm advantages and different monetary providers, has raised $35 million in a brand new funding spherical to develop its enterprise within the nation and discover worldwide markets for a few of its merchandise.
The four-year-old startup, which serves small and medium companies and different salaried workers throughout India, raised its Collection B from Horizons Ventures, Tencent and current investor JS Capital. It has raised $49.2 million thus far, with its $13.2 million Collection A closing in January final 12 months.
NiYO Options serves as a “neo-bank” that depends on conventional monetary establishments (Sure Financial institution and DCB banks, in its case) and provides to prospects extra options reminiscent of lending and insurance coverage. Blue-collared workers in India (and lots of different markets) proceed to wrestle in availing essential monetary providers from banks that usually reserve them for the privileged phase. With its payroll resolution and different merchandise, NiYO is attempting to drive monetary inclusion within the nation, it mentioned.
The startup additionally provides a worldwide journey card with no mark-up charge. Greater than 50,000 customers have already signed up for the journey card — and NiYO intends to scale that determine to 500,000 by April subsequent 12 months. In an interview with TechCrunch, Vinay Bagri, co-founder and CEO of NiYO, mentioned the startup is exploring bringing the journey card to different markets — although he didn’t share any names.
He mentioned the startup can even use the recent capital to construct new product choices and in enlargement of its distribution and advertising efforts. It additionally needs to develop its buyer base from about 1 million at the moment to five million within the subsequent three years. Bagri mentioned NiYO is trying to purchase different startups which are an excellent match for its imaginative and prescient.
Neo banks are more and more changing into common throughout the globe as conventional banks present little curiosity in addressing the wants of area of interest buyer bases. Tide and N26 are exhibiting outstanding development in European markets, whereas Azlo within the U.S. and Tyro Funds and Volt Financial institution in Australia are additionally among the many prime gamers.
In growing areas reminiscent of India, too, this tried and examined concept is more and more being replicated. Open, one other Bangalore-based neo-bank, helps companies automate their funds. It raised $30 million final month.