Fintech start-up NiYO raises $13.2 million
Bengaluru: NiYO Solutions Inc., a fintech start-up that provides software to manage employee benefits and reimbursements, has raised $13.2 million in a Series A round from investors including Social Capital, JS Capital Llc, Horizon Ventures and Prime Ventures India.
The company will use the fresh funds to strengthen and expand its product suite, hire new talent and expand into tier 2 and tier 3 towns.
NiYO provides two kinds of products focused on white-collar employers and big enterprises.
Its ‘Benefits’ product allows an employer to disburse travel allowances, medical claims, and other reimbursements to employees using a mobile app. The ‘Payroll’ product allows the employer to credit salaries to a digital bank account managed by NiYO.
For both products, NiYO provides a debit card which supports Visa and Mastercard payments at Point of Sale terminals.
The card can also be used to make online payments, transfer money using IFSC code and the account number assigned to each holder, and to withdraw money from ATMs.
NiYO has tie-ups with YES Bank and DCB Bank to provide bank account services. It provides a limited amount of free withdrawals from ATMs, after which users are charged for cash withdrawals.
The company’s co-founder Virender Bisht said in an interview that employees can place claims via a mobile app, which recognizes and records expenses made via the card. For example, money paid at fuel stations using the card will be automatically categorized under the travel allowance bracket.
With Aadhaar eKYC and self-onboarding enabled on the NiYO app, users can access their account details and keep a tab on their expenditures and allowances digitally.
Other employee benefits including meal cards, canteen solutions, corporate gift card, reimbursements account, international travel card and corporate credit cards are also provided by NiYO.
Although most of the company’s clients include big enterprises, it also has smaller start-up clients ranging from 50 employees to 500 employees, Bisht said.
NiYO currently has around 500 corporate clients and 100,000 salaried employees. It aims to serve 5,000 organizations and over 1 million salaried employees by the end of 2018.
He added that the Indian market the company is targeting has around 75 million salaried employees.
“It’s been around a year and a half since we rolled out the product. The initial aim was to concentrate on the Delhi and Bangalore markets. But we are now looking to expand to all manufacturing markets like Salem, Coimbatore, Peenya, Pune, and others in the coming months,” Bisht said.
“NiYO’s strong growth since its inception is testament to both the innovative nature as well as rapid customer adoption of their solution which addresses a massive opportunity-providing effortless and innovative solution to manage payroll and benefits, powered by mobile. The combination of smartphone penetration and IndiaStack makes the timing right for NiYO’s patent-pending innovations to come to market,” Sanjay Swamy, managing partner at Prime Venture Partners said in a statement.
The company monetizes by charging an annual fee for this product, that the employee or the employer pays.
It also makes money from Merchant Discount Rate (MDR) charges, for transactions made at point of sale counters, Bisht said.