Chennai, NFAPost: Fintech startup Niyogin has announced acquisition of 51% strategic and controlling stake in iServeU for Rs 59.2 crore ($8 million) in a cash plus stock deal.
Niyogin’s vision is to create a full-stack digital platform for unserved or underserved and bring best in class products and services on the platform. Niyogin has been scaling its unique platform through a network of financial professionals and with products such as wealth, credit, and other SaaS-based products that help digitise small businesses.
iServeU leverages the full capability of digital platforms and public payments infrastructure to reach the underbanked with focus on rural India. The company enables small village merchants to serve local communities and drive financial inclusion through iServeU’s digital platform. iServeU has seen rapid adoption of its platform and has been processing transactions worth $500 million annually on its platform. The transactions and platform adoption have accelerated through the lockdown caused by the COVID-19 pandemic, as rural local communities rapidly moved towards digital adoption.
Niyogin currently has credit and non-credit product including India’s leading Digital wealth platform under brand “Moneyfront” with assets under administration of over $100 million.
The acquisition provides Niyogin with deep market access to un/under banked India. Apart from market access for the firms, there are multiple product complementarities such as credit, digital wealth, and payments, among others, which the two companies can jointly access to create a strong full-stack fintech value proposition for its customers.
“We welcome iServeU and the team to the Niyogin family. They bring with them a unique platform, reach, and experience that will be of immense benefit to Niyogin. We continue to make strategic investments in effectively using technology to bring digital enablement to unserved,” Niyogin Fintech Chairman and Co-founder Amit Rajpal.
Niyogin’s capabilities combined with iServeU’s digital platform strengths will maximize impact to the underserved and unserved customers and allow us to expand product stack and addressable market, he added.
iServeU Technology Pvt Ltd (iServeU) is a DIPP certified Fin Tech Company registered under The Start-up India program of Government of India, supported by NSTDEB. The five-year-old company is successfully running several technology solutions in partnership with Banks, NBFCs, FI Players and Corporate BCs. iServeU has over 50,000 retailers and Rs 3,500 crore transactions per year with access to over 25,000 villages across India and over 500 concurrent transactions per second.
Welcoming the acquisition, iServeU Technologies Co-Founder and Chief Executive Officer Debiprasad Sarangi said, “We see Niyogin as a long-term strategic partner and are excited about what Niyogin and iServeU can deliver jointly to rural customers and micro-businesses, transform communities, leverage technology to empower people and accelerate much needed financial inclusion in India. The capital infusion will be used to scale and accelerate growth with expanding footprint deeper into rural India and new product innovation.”
Equirus Capital acted as the exclusive financial advisor to iServeU for this transaction.