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Neobanking startup Niyo has raised $30 Mn in its latest funding round from Multiples Alternate Asset Management. 

Niyo will use the fresh capital to expand product capabilities and widen its customer base. It will further use funds for brand building and bolstering its team across divisions.

“Our focus is on enhancing product development and expanding product suite to have more consumer-focused products like credit cards, remittances and loans etc. Our  foray into new categories will help us leverage tailwinds for digital financial products that the market  is seeing today,” Niyo CTO and cofounder Virender Bisht said.   

Niyo, founded in 2015 by Vinay Bagri and Bisht, offers digital savings accounts and other banking services in association with other banks. It is looking to expand its services to over 16,000 pin codes in the country.  

In February this year, Niyo secured $100 Mn from a bunch of investors, including Accel, Lightrock India, Beams Fintech Fund, and JS Capital. 

Niyo serves nearly 4 Mn customers through its banking and wealth management  products. Over 10K new users visit its platform daily, according to the startup. Niyo has processed transactions worth over $3 Bn to date, it said in a statement. 

In the neobanking space, Niyo competes with the likes of Open, Jupiter, Fi and Zolve. 

While Open turned unicorn in May this year, Jupiter and Fi are grappling to comply with RBI’s PPI guidelines. Last year, Zolve also raised INR 300 Cr from DST Global, Tiger Global, Alkeon Capital, and existing investors Accel and Lightspeed Venture Partners. 

According to an Inc42 report, India’s fintech market is estimated to grow to $1.3 Tn by 2025. Of this, the neobanking sub-sector, which is currently estimated at $48 Mn, is likely to double its market size to $97 Mn by 2025.