Ward Ferry-backed Niyogin to infuse $14 mn for expansion

By Nikhil Patwardhan

  • 02 Nov 2021
Credit: VCCircle

Niyogin Fintech Ltd, a technology-focused non-bank lender that counts Hong Kong investor Ward Ferry as a key shareholder, will invest Rs 100 crore ($14 million) to fuel expansion the company said in a statement. 

The company’s board approved the “hypergrowth plan” entailing up to Rs 100 crore investment, the company said on announcing its September quarter results. 

With the investment, the Mumbai-based firm is looking to build a fintech platform infrastructure that enables businesses to deliver contextual financial services to their customers.  

Niyogin, formerly known as M3 Global Finance Ltd, is also looking to forge strategic partnerships on demand and supply sides, the company said in its investor presentation.  

The company is building an open platform that offers different financial products which can be rapidly adapted for various products and is ramping up its customer acquisition strategy.

The hypergrowth business plan to invest Rs 100 crore will create the most comprehensive financial inclusion platform offering in the market enabling the business to scale rapidly and build multiple-interlinkages with open architecture and in a modular format, said Amit Rajpal, co-founder and non-executive chairman, Niyogin Fintech Ltd

The investment follows a multi-fold jump in the company’s consolidated total income in the September quarter. Niyogin also clocked gross transaction value of Rs 2,000 crore in the second quarter of the current financial year.  For the quarter, it also reported a consolidated revenue of Rs 26 crore, up 230.5% from last year.

“Our decision to invest incremental capital in the business will enable us to expand the addressable market and add multiple products to make this the most comprehensive fintech infrastructure platform. This will be a holistic system for our partners, experienced as a standalone Application, API or SDK depending on their requirements,” said Tashwinder Singh, CEO, Niyogin Fintech Ltd. 

Singh, a former KKR executive was appointed as the CEO in October last year.

Registered in Chennai, Niyogin is a non-banking financial company (NBFC) engaged in providing online loans and financing services. It provides an unsecured business loan to micro, small and medium enterprises (MSMEs). 

Niyogin also runs digital wealth platform Moneyfront which has over $100 million in assets under administration. It had acquired a 50.1% stake in Moneyfront for Rs 12 crore in 2018 to add product suites in mutual funds and fixed-income instruments.

Amit Rajpal and co-founder Gaurav Patnakar had acquired M3 Global Finance in late 2016.

Rajpal is a partner at hedge fund Marshall Wace in Hong Kong. Patnakar worked with The Boston Company Asset Management in New York until 2016 and is a freelance consultant now. 

In 2017, Niyogin raised Rs 222.5 crore in 2017 from investors including Ward Ferry. Sabre Capital that was also supposed to participate in the transaction eventually did not invest. 

A year later, Niyogin had acquired a 50.1% stake in Moneyfront for Rs 12 crore to add product suites in mutual funds and fixed-income instruments. 

Last year, the fintech firm had agreed to acquire a 51% stake in iServeU Technology Pvt. Ltd for Rs 59.2 crore ($8 million) in a cash-and-stock deal.