Neobank Fi raises USD 50 million in new funding round led by B Capital

Indian neo banking platform, Fi has reportedly secured USD 50 million in the latest funding round led by Facebook Co-founder Eduardo Saverin’s global investment firm, B Capital. The funding round also saw participation from alternative asset management firm Falcon Edge Capital.

The firm is valued at USD 315 million post this second funding round, 7 times higher than its initial valuation. The new funding comes as a result of an intermediate infusion of USD 12 million from its existing investors, taking the total to USD 62 million. The company has managed to raise USD 75 million since its inception.

Co-founder of Fi, Sumit Gwalani, was quoted saying that the fresh funds will be used to offer more customized products to users and expand its tech team. The company has already launched the waitlist for upcoming products and has provided access to one out of three or four applications.

There were about a million applications on the waiting list, and the volume of monthly transactions from users was quite higher than the firm’s expectations, he added.

According to sources, eight out of ten millennials don’t understand finances, and Fi is trying to demystify it through its technology-led thinking.

Kabir Narang, founding general partner, B Capital, stated that Fi is focused on catering to the finance-related needs of 60 million Indian tech-savvy millennials. This is indeed a large, attractive, and growing market in the backdrop of USD 180 ARU (average revenue per user) for major retail banks in the nation.

Fi is currently recording nearly 3-4 million monthly transactions, and aims to redesign its conventional saving products like fixed deposits or working deposits with customized solutions. This will also include debit cards, mutual funds, and stock investments.

Source Credits-

https://economictimes.indiatimes.com/tech/funding/neo-bank-fi-valued-at-315-million-after-50-million-funding-led-by-b-capital/articleshow/87438403.cms