Bengaluru-based fintech startup Niro has ceased operations after a four-and-a-half-year journey in the digital lending space. The decision marks the end of a venture that once sought to transform consumer credit access through embedded finance partnerships.
The company had raised nearly $20 million from notable investors including Elevar Equity, GMO Venture Partners, Rebright Partners, Mitsui Sumitomo Insurance VC, and Innoven Capital. Despite strong investor backing, tightening regulatory frameworks and growing concerns over credit quality ultimately hindered its long-term viability.
Founded in 2021 by Aditya Kumar and Sankalp Mathur, Niro operated a B2B2C credit platform that allowed consumer internet brands to embed lending options within their ecosystems. The company facilitated loans ranging from ₹50,000 to ₹7 lakh, with repayment tenures between 6 and 72 months and interest rates spanning 12% to 28%.
At its peak, Niro managed an AUM of $100 million and reached nearly 170 million users through its partner network. However, increasing regulatory scrutiny, funding headwinds, and a rise in credit risk forced the startup to wind down its operations.
Its embedded lending model became difficult to sustain amid stricter compliance norms and tightened liquidity conditions in the fintech sector.
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Financially, Niro’s FY24 revenue dropped by 59% to ₹7.86 crore, down from ₹19.09 crore in FY23, while net losses widened to ₹48.7 crore from ₹36.9 crore the previous year.
In a closing note, Aditya Kumar expressed gratitude to Niro’s employees, partners, and investors, emphasizing the team’s resilience despite mounting challenges.