In order to drive the expansion of its payroll and benefits platform, Bengaluru-based fintech startup NiYO Solutions has raised $13.2 million in its Series A funding from Social Capital, JS Capital and Horizons Ventures. Existing investor Prime Venture Partners also participated in this round.
The current funding will be used by the startup to strengthen its product suite, hire new talent and expand its presence into tier 2 and tier 3 towns, the company said in a statement.
Vinay Bagri, CEO and co-founder of NiYO said, “We deeply believe that the rapidly growing number of salaried employees in India have not seen much innovation when it comes to their own payroll and benefits. They are mobile and app-savvy and very demanding.”
According to Bagri, the addressable market for the company’s products is close to 75 million salaried employees in India. The product can also increase the take-home salaries and simplify financial planning and other banking needs for employees, he claims.
Founded in 2015 by Vinay Bagri (ex-Kotak Mahindra) and Virender Bisht (ex-Mobikwik), NiYO was launched as a pilot in July 2016. The startup provides expense cards with all HR functions integrated into it – including salary and benefits.
NiYO charges an annual fee for its offering either from the employee or the employer. It also makes money from Merchant Discount Rate (MDR) charges, for transactions made at point of sale counters. Currently, it has around 500 corporate clients and 100,000 salaried employees. Further, it aims to serve 5,000 organizations and over 1 million salaried employees by the end of 2018.
NiYO has also partnered with YES Bank recently to integrate their solution with the bank and roll out a multi-pocket card, an app and a digital account comprising multiple wallets.
With this current funding round, the total fund raised by the startup has reached about $14 million. NiYO previously had raised seed funding of undisclosed amount from Prime Ventures in July 2016.