Fintech Startup Niyogin to Pick 51% Stake in iServeU for $592 Mn
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Fintech startup Niyogin on Monday said it has acquired 51 per cent stake in iServeU, a financial technology solution provider, for INR 592 million (USD 8 million) in a cash plus stock deal.
Backed by the National Science & Technolgy Entrepreneurship Development Board (NSTEDB), iServeU claims to enable small village merchants to serve local communities and drive financial inclusion through its digital platform. The company has been processing transactions worth USD 500 million on their platform annually.
Commenting on the deal, Debiprasad Sarangi, co-founder and CEO, iServeU Technologies 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.”
The Bengaluru-based fintech startup has seen rapid growth during the Covid-19 outbreak as more and more rural populace resorted to digital platforms for transactions and other financial purposes amidst the lockdowns.
“They (iServU) bring with them a unique platform, reach, and experience that will be of immense benefit to Niyogin,” said Amit Rajpal, Chairman and Co-Founder, Niyogin Fintech.
“We continue to make strategic investments in effectively using technology to bring digital enablement to unserved. 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.”
Apart from market access for the firms, there are multiple product complementarities, including credit, digital wealth and payments, among others which the two companies can jointly access to create a strong full-stack fintech value proposition for their customers, the company statement read.