Can Niyogin Fintech be the true player of digital transformation and financial inclusion partner of India?
Who I am: The company operates on a tech-centric platform-based model offering Banking as a Service (BaaS) through our subsidiary, iServeU and credit solutions to both rural and urban areas in India. We employ a partnership-led strategy collaborating with local enterprise partners that possess extensive distribution networks. These partnerships allow us to leverage the partner’s infrastructure for cost-effective outreach to our targeted customers primarily micro, small and medium enterprises (MSMEs).
Once we onboard a partner, iServeU’s Banking as a Service (BaaS) platforms are integrated into the partners’ customers’ facing touch points. This integration enables these touch points to offer banking, payment, and financial services to their local clientele. By adopting this partner-led approach, the Company can effectively extend its services to a larger number of MSMEs and SMEs through each partner it engages with. The revenue model primarily revolves around transaction fees or commissions earned on every transaction processed through the platform. As an NBFC, Niyogin extends its services to MSMEs by providing credit. They facilitate lead generation and provide digital access to credit and other financial services for MSMEs through our distribution platform NiyoBlu and also by our several Fintech partnerships. Niyogin employs various lending models and generates revenue through either interest income or fees associated with loan lead generation.
“Consolidated Financials” for the Quarter: Revenues stood at Rs. 53.8 crores up 99% year-on-year and 13% quarter-on-quarter. The revenue increase was driven by the prior quarter service revenue and a marginal sequential improvement in Take rates. The adjusted EBITDA loss gap narrowed from Rs. 8.2 crores in Q2 FY24 to Rs. 1.4 crores in Q3 FY24 due to improving economics in the lending and distribution business. ESOP charge for the current quarter was Rs. 0.3 crores versus Rs. 1.1 crores in the previous quarter. The non-GAAP PBT stood at Rs. (4.5) crores in Q3 of this year as against the non-GAAP PBT of Rs. (10.1) crores in the previous quarter. The consolidated cash and cash equivalents stood at Rs. 93.1 crores as on 31st December 2023.
Key development:
- Actively evaluating the acquisition of a comprehensive toolkit to augment our solution suite, particularly in the realm of AI-based assisted and unassisted tools for our partners.
- Successfully resolved the issues affecting the UPI business.
- Consistently booking provisions in accordance with the ECL norms.
- The Company has implemented a comprehensive strategy cantered around 3 pillars of growth
Leveraging our Partner-Led Distribution Channel.
Commitment on Risk Management.
Achieving Technology Enabled Cost Efficiency Throughout the Loan Process.
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