In the deep layers of the national economy, the wheels of national economics keep turning. All industries, sectors, and businesses contribute to nation-building regardless of their size and type.
Though big businesses with major players get all the limelight, small businesses remain invisible. This invisibility adds to the many issues small enterprises face, which has the lion’s share in the country’s progress while operating under the most challenging circumstances.
“India has a conducive atmosphere for small businesses to thrive in but lacked a platform that could understand, support, and, therefore, enhance the potential of these businesses across domains. To support and empower these small businesses, Niyogin Fintech Limited was born,” says the CEO and MD, Tashwinder Singh.
“We are committed to delivering impact-centric solutions and building the ‘Neobank’ platform infrastructure to power MSMEs through our lending and distribution business using our partnership-led model,” he adds.
An Integrated Neobanking Platform
Niyogin Fintech Limited is an early-stage, publicly listed, licensed NBFC with a revenue of ₹45 Crore, (4.3) Cr EBITDA, and a total income of 45.5 Cr. Niyogin’s gross transaction value (GTV) is Rs 9,893 crores as of Q1 FY23-24. It operates on a tech-centric platform-based model, delivering ‘Banking as a Service’ or BaaS platforms and credit in rural and urban India through a partnership-led strategy.
Tashwinder explains, “Through this strategy, we collaborate with our partners with a significant and well-established distribution infrastructure. Our vision is to create a digital platform that serves as a one-stop solution to meet the financial and non-financial needs of MSMEs. Our network gives us cost-efficient market access and powers several MSME partners to augment their income while delivering solutions to their clients.”
These partners then use the platform to provide their local customers with banking, payment, and other financial services via customer-facing touchpoints.
He adds, “A key element of our business is lending. We are focused on creating the right lending models to ensure the appropriate monetization of our networks. We have inked partnerships with new-age organizations to assist in monetizing their network.”
Providing neo-banking services to small businesses across the length and breadth of the country, Niyogin Fintech possesses numerous USPs, based on which it is currently positioned as one of the most impactful companies in India.
Synonymous with Empowerment
According to Tashwinder, Niyogin is a one-of-a-kind organization designed to help small businesses grow. It is a digital platform-centric company with lending capability.
“This makes us unique. Our motivation is to focus on the underserved segment of the economy. Therefore, we try to make sure that our products and capabilities are driven toward providing solutions to the underserved segments, like providing loans or technology solutions that can help boost financial inclusion and perform all banking transactions for the ecosystem of people who live around. We are committed to delivering impact-centric solutions and building the Neobank platform infrastructure to empower small businesses using our partnership-led model,” says Tashwinder.
In addition, Niyogin’s distinct revenue model is primarily transaction-led, wherein the company earns a fee or commission on every transaction routed through the platform. Being an NBFC, Niyogin can serve SMEs by providing credit as well. Moreover, Niyogin’s recently launched platform, NiyoBlu, enables lead generation and offers credit along with other financial services to its partners digitally.
NiyoBlu offers clients a unique opportunity to create an alternate steady income stream by earning a fee on every financial product they distribute to their clients. “It is a tech platform that provides you a window to enable you to deliver multiple financial products to your clients, all executable online, at the same time, earning you a fee on every transaction executed!” says Tashwinder, adding, ‘Be a Digital Banker and let your clients bank on you!’
You Can Bank Upon Us, Always!
There are various immersive benefits of the solutions Niyogin offers to its client organizations. “We operate on a Tech-centric model,” states Tashwinder.
Technology is the backbone of the business in product delivery and seamless experience. The company’s tech platform is scalable, wherein products can be accessed easily as per the customers’ requirements. Niyogin is engaged in multiple products to grow its lending book, including co-lending with various service providers.
Niyogin’s team offers white-labelled solutions to partners who use its technology in customer-facing touchpoints. “Thanks to the platform’s capabilities, these touchpoints are now well-equipped to provide banking, payment, and financial services in their local community,” says Tashwinder, who has extensive experience in investment banking, deal due diligence, and principal investing asset management for credit opportunities in India.
Innovative Leadership Intelligence
His 26 years of leadership experience with a background in General Management, Banking, Wealth Management, and Private Capital Investing with organizations like Citigroup and KKR has helped him tremendously in executing his current role as the CEO and MD at Niyogin.
Tashwinder joined in October 2020 and has helped the company significantly shift toward scalability. He informs, “I always encourage team-building at Niyogin with a passion for defining and implementing future-driven strategies and growing businesses through entrepreneurial innovation and a customer-centric approach.”
He adds that their prime focus across platforms in business services, wealth, and payments is to build and manage the ‘scale of business.’ He envisions Niyogin to be one of the leading Fintechs in the country, and they have been making considerable progress in this direction.
Confidently Combating Challenges
Considering the current industry scenario, Tashwinder reveals that there are various challenges they have to overcome constantly. “We have to constantly keep pace with the changing regulatory compliances and align our business goals with these evolving regulations,” he says.
Secondly, acquiring new clients and retaining the existing ones in this fiercely competitive fintech market has always kept them bustling and on the go. A company like theirs needs to find ways to differentiate itself from the competition and offer products and services that meet the needs of its target customers. Fortunately, Niyogin and iServeU (a Niyogin subsidiary) are both B2B businesses with high product market fit. Also, they have a complex integration process, thus ensuring high exit costs. “Being a regulated entity, it also gives our customers more confidence to partner with us,” mentions Tashwinder.
As part of its partner-led strategy, the company works with business partners who have sizable and established distribution networks. Through their customer-facing touchpoints, these partners use Niyogin’s platform to offer banking, payment, and other financial services to its local clients. This partner-led strategy provides cost-effective market access and decreased customer acquisition expenses.
Strengthening Bharat’s Future
Niyogin’s current strategic alliance partners include TATA Capital, indiagold™, vital, tru, Kotak Life Insurance, INDOSTAR, BAJAJ Finserv, digit, HDFC Bank, LENDINKA₹T, Kotak Mahindra Bank, Dhanvarsha, Aditya Birla Health, Fullerton India, and IDFC First Bank. You, too, can partner with Niyogin.
On envisioning scaling the company’s operations and offerings in the future, Tashwinder divulges that they started demonstrating the scaling up of their business in the second half of last financial year and that journey has now gained momentum. A significant contribution to their growth is now coming from the enterprise partnership-led strategy. As enterprise channel scales up, they will see gross rates decline however impact on net take rate will be limited. This is primarily because enterprise channel income will have lower merchant pay-outs as compared to retail channels. He adds, “Therefore, as we acquire incremental enterprise partners, increase our footprint on the ground, and launch newer products and services, we have the opportunity to become the market leader in our chosen verticals.”
For the next three years, Niyogin aims to focus on three main areas—expanding its current alliances, growing its presence by bringing on new partners , and expanding its product offerings to provide its partners with a one-stop-shop.
Tashwinder elaborates, “We expect the current year to be the ‘Year of Scale.’ We are focusing on implementing product propositions and executing our existing partnerships. We are focused on developing our Intellectual Property, which will help us grow in the coming years. We are committed to financial inclusion and empowering individuals and businesses through an open, smart, customized, and modular platform.”
“With our focus on innovation, strategic partnerships, and a robust business model, we are driving financial inclusion and creating a positive impact on the lives of millions of people,” concludes Tashwinder.
*Niyogin Fintech Limited Hall of Fame:
- Marksmen – Indiarecognized Niyogin Fintech as one of the 50 Most Trusted BFSI Brands, 2021.
- TATA Capital– Business Loans appreciated Niyogin Fintech’s valued contribution in crossing a milestone of ₹500 Cr Book Value in Business Loans CCOD Product.
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