The ‘Fin-tech Enabler, Shaping the Growth of MSMEs Since Inception
Delivering impact-centric solutions and building the “Neobank” platform infrastructure to power MSMEs through Rural, Urban and Wealth Tech, a fintech player is engraving its roots across the domain to leverage via its expertise to several financial verticals. The technology-driven, platform-centric firm Niyogin Fintech Limited is focused on building a solid financial services infrastructure platform that will enable them to deliver “Banking as a Service” (BaaS) for all distribution and customer-facing firms through a partner-led approach.
Niyogin is a Sanskrit word for “empowerment.” After getting a deep understanding of the real daily problems of small businesses, Niyogin was conceptualized with a vision to have a substantial impact on the lives of small businesses by giving them solutions that leverage the power of digital technology combined with a trusted partner network.
In accordance with the partner-led strategy, the team also works with local MSMEs and other enterprise partners who have a sizable and established distribution infrastructure. Through their customer-facing touchpoints, these partners use the platform to provide banking, payment, and other financial services to their local customers. Domestic Money Transfer (DMT), Micro ATM (M-ATM), Aadhaar Enabled Payment System (AePS), Aadhaar Pay, and Microinsurance are a few of the services they offer.
WHAT GIVES NIYOGIN AN EDGE OVER THE PEERS?
While there are many things that differentiate Niyogin Fintech from the rivals, there are two significant factors. First is the financial inclusion problem they are trying to tackle. Niyogin has they employed a customer-centric approach with the intention of empowering 900 million rural Indians and underutilised MSMEs. With the help of this target consumer group, they are focused on offering broad financial inclusion.
The product offerings, which include access to banking services among other financial services and may extend to other non-financial services product sectors, are guided by a customer-centric philosophy. Second is their open tech platform. This makes it possible for them to create a full-stack, partner-ready financial services infrastructure that is ready for API and SDK with diverse needs.
CREATING MEANINGFUL IMPACTS IN THE MSME SPACE
Niyogin Fintech is currently in the execution stage and making substantial advancements toward its objective of delivering financial inclusion that will ultimately have a meaningful influence on the MSME industry. The platform has received a tremendous level of market acceptance.
They have formed partnerships with businesses with a wide distribution network that can reach 90% of rural India, including India Post Payments Bank, Common Service Centers, Bajaj Finance, and Bharat Financial. As they carry out these relationships, network numbers will increase in the upcoming year. Additionally, they keep adding new products to the technological platform, building a complete ecosystem to service the MSME market.
NOTEWORTHY FINANCIAL SOLUTIONS OFFERED BY NIYOGIN
In Rural Tech, they have a comprehensive product stack delivered through its subsidiary, iServeU.
a. Financial inclusion stack: It consists of the Cash to Digital product (DMT), the Digital-to-Digital product (Aadhaar Pay), and the Digital to Cash products (M-ATM and AePS). In addition, they offer BBPS, IRCTC rail ticket services, micro insurance and LIC premium payment options.
b. Neobanking and card stack: It covers prepaid cards, mobile banking with partner banks, and agent-aided and totally digital account opening.
c. Transactional Banking stack: It includes POS solution and BBPS COU.
d. In addition, under Customer Relationship Management (CRM) solutions, they launched a lending CRM for partners and also provide transaction-led credit to the partners and retailers they work with.
In Urban Tech, they are providing credit and wealth solutions.
01. Credit – They collaborate with lending partners and provide unsecured working capital loans, transactioncentric short-duration loans, and secured loans.
02. Wealth Tech – They provide a SaaS B2B platform that enables financial professionals to build their wealth practice and help MSMEs and MSME owners in wealth management.
NIYOGIN’S INNOVATIVE WORK CULTURE
Niyogin Fintech houses some of the most intelligent minds that come from diverse backgrounds. Niyogin stands for ‘empowerment,’ which is imbibed within the organization as well. The management has built a culture that is inclusive, transparent, focused on aligning personal goals with organizational goals and promotes open communication wherein it allows the employees to share their thoughts and ideas without any restraints.
The employees are the pillars of the organization, and therefore Niyogin is building high-performing teams, promoting creativity, inducting leadership at all levels and preparing them for higher positions.
OBSTACLES ON THE WAY
When building a customer base, in the initial years, a fintech company witnesses a very high capital burn rate and this has been one of the most prevalent problems in the fintech sector. Niyogin, which recognised this issue very early on, has successfully reduced the costs associated with customer acquisition.
Instead of establishing the network from scratch, their partner-led model is intended to make use of the existing network of financial professionals, BC, and Enterprise partners to connect with the target audience. With cost-effective market access provided by partners, both Rural Tech and Urban Tech operate on a partner-led model, which reduces both the capital burn rate and customer acquisition costs. The platform’s goal is to enable partners to provide top-notch services using world-class goods.
ACHIEVEMENTS ON THE WAY
Niyogin Fintech has emerged as the “Go To” partner for the technical architecture to deliver financial inclusion products, and that makes the team immensely proud of what they are building. Recently, the National Payments Corporation of India (NPCI) added the subsidiary iServeU to its list of certified technology partners. At the Global Fintech Festival, NPCI also formally acknowledged iServeU as the first Technology Service Provider (TSP) for going live with Bharat Bill Payment System (BBPS).
FUTURE OUTLOOK – WHAT’S NEXT?
FY2023 has been an year of build for Niyogin Fintech as the team directed their energies on implementing product propositions and executing the current existing partnerships. Going forward, they will continue to develop and release items simultaneously in the future. They will also be working on their intellectual property, which will aid in their expansion throughout the ensuing years.
“Our three-year plan has been termed as ‘Hypergrowth strategy’ wherein we expect our Gross Transaction Value (GTV) to grow more than 11 times over the next three years, from over Rs. 9,000 crores in FY 2022 to over Rs.1 lakh crores in FY 2025. We aim to increase the number of BC agents or touch points by 6-8 times, from close to 247,000 to roughly 1.5–2 million.” The visionary CEO Tashwinder Singh confidently announced, “We anticipate that this would enable us to become a Rs. 500 crore revenue firm by FY 2025 and to produce an EBITDA margin of 10%-12%.
Words of Wisdom, by
MD & CEO of Niyogin Fintech
I want to promote the idea of growing a company in a calibrated manner. After the initial build is over, which obviously requires a lot of investment, your hunger for success and growing the topline should not come at the cost of a decrease in shareholders’ wealth. I would also like to add that one should dream big and keep eyeing new opportunities that can be leveraged and align well with your ultimate vision for the Company.
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