Ward Ferry supports Niyogin with $ 14 million for expansion


Niyogin Fintech Ltd, a technology-focused non-bank lender that has Hong Kong investor Ward Ferry as a major shareholder, will invest 100 billion rupees ($ 14 million) to drive expansion, the company said in a statement.

The company’s board of directors approved the “hypergrowth plan,” which includes investments of up to Rs 100 crore, the company said when it announced its quarterly results for September.

With the investment, the Mumbai-based company aims to build a fintech platform infrastructure that enables companies to offer their customers contextual financial services.

Niyogin, formerly known as M3 Global Finance Ltd, is also seeking strategic partnerships on the demand and supply side, the company announced in its investor presentation.

The company is building an open platform that offers various financial products that can be quickly customized for different products and is expanding its customer acquisition strategy.

The Hypergrowth business plan to invest Rs 100 crore will create the most comprehensive suite of financial inclusion platforms on the market, allowing the company to scale rapidly and build multiple connections with an open architecture and in a modular format, said Amit Rajpal , Co-Founder and Non-Executive Chairman, Niyogin Fintech Ltd.

The investment follows a multiple increase in the company’s total consolidated income for the September quarter. Niyogin also achieved a gross transaction value of Rs.2,000 billion in the second quarter of the current fiscal year. For the quarter, it also reported consolidated sales of Rs 26 crore, 230.5% more than a year earlier.

“Our decision to invest additional capital in the business will allow 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 that will be experienced as a standalone application, API or SDK as needed, ”said Tashwinder Singh, CEO, Niyogin Fintech Ltd.

Singh, a former KKR manager, was named CEO last October.

Niyogin is a Chennai Registered Non-Bank Financial Company (NBFC) providing online lending and financing services. It offers an unsecured business loan to micro, small and medium-sized enterprises (MSMEs).

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

Amit Rajpal and co-founder Gaurav Patnakar took over M3 Global Finance at the end of 2016.

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

In 2017, Niyogin raised Rs 222.5 crore in 2017 from investors like Ward Ferry. Saber Capital, which should also participate in the transaction, ultimately did not invest.

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

Last year the fintech company agreed to acquire 51% of the shares in iServeU Technology Pvt. Ltd for Rs 59.2 billion ($ 8 million) in a cash and stock deal.

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