### **Executive Summary** **Niyogin Fintech Ltd** is a publicly listed (BSE) fintech company in India that has transformed from a focused Non-Banking Financial Company (NBFC) into a diversified **technology-led financial services platform**. Leveraging strategic acquisitions, organic growth, and deep partnerships, the company operates across four core verticals: **Embedded Lending (NBFC)**, **Payments Infrastructure (iServeU)**, **Wealth Technology (Moneyfront)**, and **Artificial Intelligence (Niyogin AI)**. The company serves underserved MSMEs and rural communities by combining digital infrastructure with trusted partner networks. Its asset-light, platform-centric business model emphasizes **scalability, cost efficiency, and data-driven decisioning**, positioning Niyogin as a foundational “highway” for financial inclusion in India. --- ### **Strategic Restructuring: Demerger & Corporate Separation** In FY25, Niyogin undertook a significant corporate restructuring aimed at sharpening focus, improving governance, and unlocking value: - **Demerger into Two Listed Entities (Effective FY26):** - **Niyogin Fintech Ltd**: Tech-enabled NBFC focused on embedded lending, wealth tech, and AI-driven solutions. - **iServeU**: Independent Payments Infrastructure & Technology Service Provider (TSP) business. > *Rationale:* This separation enables both entities to pursue distinct growth strategies, attract aligned investors, raise independent capital, and operate with streamlined leadership. --- ## **Core Business Segments** --- ### **1. Embedded Lending (Niyogin NBFC)** Niyogin’s NBFC segment operates as a **capital-light, tech-powered lending platform** using a partner-led, embedded finance model. #### **Key Highlights (Nov 2025)** - **Loan Book Composition**: - **88% sourced via fintech and enterprise partnerships**. - **Merchant EDI (Equated Daily Instalment) loans** dominate the portfolio, accounting for **~50% of the loan book**. - **Partnership Model**: - Partners bear customer acquisition and collection costs. - Niyogin handles underwriting and funding – minimizing credit and operational risk. - **API-Driven Lending Programs**: - Fully digital, customizable APIs allow platforms to launch tailored credit products within minutes. - Supports multiple repayment models: EDI, EWI (weekly), EMI, and bullet. - **Scale Milestones (Q2 FY26)**: - Processed **2.1 lakh loans** (+6% QoQ). - **API usage surged to 60 lakh hits per quarter** (+50% QoQ). - **Key Partnerships**: - Embedded lending live on platforms such as **Khatabook, Meesho, and Ninjacart**. - Cumulative disbursements: **> ₹200 crores**, with EDI contributing 56%. - **Outlook (Feb 2025)**: - Target AUM: **₹300 crores (FY25E), ₹550 crores (FY26E), ₹800 crores (FY27E)**. - Goal: Achieve **>14.5% ROE by FY27**. --- ### **2. Technology Infrastructure & Payments (iServeU)** **iServeU**, now a standalone SaaS and TSP business, is a **Banking-as-a-Service (BaaS)** platform enabling banks, fintechs, and correspondents to offer integrated financial services. #### **Key Highlights (Nov 2025)** - **Business Model Shift**: - Transitioned to a **high-margin SaaS/TSP model**, reducing reliance on revenue-sharing. - Generates recurring income via device subscriptions, transaction fees, and licensing. - **Order Book Strength**: - **₹623 crores net contract value** across **39 contracts** (Nov 2025). - Largest segment: **Acquiring Solutions (₹590 crores)** — POS, UPI, Soundbox, BBPS. - **Soundbox Leadership**: - **Total deployments: 326.9K units** (58.4K added in Q2 FY26). - **Target: 2.5 lakh units by FY27**, with an outstanding order backlog of **>700K devices (~₹350 crores)**. - Clients: **Canara Bank, SBI Payments, Bank of Baroda, Axis Bank, J&K Grameen Bank**. - **Transaction Scale**: - **95 million transactions** processed in FY25. - Over **1 million merchants onboarded**. - **Pending Opportunities**: - Tenders with **India Post Payment Bank** and **SBI Payment Bank** in active pursuit. - **Financial Performance (May 2025)**: - Achieved **first PBT-positive quarter** and **three consecutive EBITDA-positive quarters**. - SaaS/TSP now ~53% of revenue (vs. 8% YoY). --- ### **3. Wealth Technology (Moneyfront)** Through its **50.01% stake in Moneyfront**, Niyogin offers **SaaS-based digital wealth management tools** to finance professionals and enterprises. - **Platform Purpose**: - Enables **Chartered Accountants and advisors** to offer wealth products (mutual funds, insurance, FDs) to MSME clients. - Fully digital, compliant KYC and onboarding via APIs. - **Growth Metrics**: - **>6,375 finance professionals** using the platform. - Each serves 100–150 MSMEs. - **Revenue Model**: - Subscription fees, performance commissions, setup and maintenance charges. --- ### **4. Artificial Intelligence (Niyogin AI & SuperScan)** Niyogin AI is an emerging standalone revenue vertical, built around the **acquisition of SuperScan** – an AI-powered OCR toolkit. #### **Key Capabilities** - **Smart Document Processing**: - Converts unstructured data from IDs, invoices, medical records into structured formats. - **>93% OCR accuracy**, even in low-connectivity areas. - **Use Cases**: - KYC automation for BFSI firms. - Aadhaar masking, video-based onboarding, claims digitization. - **Monetization**: - Active contracts with **a leading life insurance provider**. - Reduced onboarding time from days to **one day (90% improvement)**. - **Revenue Targets (Feb 2025)**: - Projected **₹3–5 crores ARR by FY27**. - Viewed as a **scalable, independent business**, not just internal support. --- ## **Technology & Product Stack** Niyogin operates a **full-stack, API-first platform** that powers both internal and partner operations. ### **Key Innovations** - **iSwitch**: In-house, cloud-native transaction switch enabling faster routing and higher success rates. - **Proprietary AI & Data Engine**: - Automates KYC, underwriting, collections. - Builds partner-specific scorecards using behavioral, cash flow, and operational data. - **NiyoBlu Platform**: - B2B2C loan origination and distribution engine. - Matches leads from 30+ lenders; used by 6,375+ CAs. - **Device & Hardware Ecosystem**: - Soundbox, POS terminals, and integration with PAX Technology for all-in-one terminals (QR, NFC, sound). - **Open Architecture**: - Supports APIs, SDKs, On-Prem, Cloud, SaaS — enabling deployment in any network condition. --- ## **Strategic Advantages** ### **1. Capital-Efficient Partner-Led Model** - Low customer acquisition cost (CAC) by leveraging existing networks of CAs, fintechs, and retail partners. - Scalable distribution without heavy physical presence. ### **2. Data-Driven Underwriting** - Access to **real-time transaction data** from partner platforms enables superior risk modeling. - Custom underwriting policies per partner ensure high conversion and lower delinquency. ### **3. Diversified Revenue Streams** | Segment | Revenue Sources | |--------|----------------| | **NBFC** | Interest income, loan origination fees | | **iServeU** | SaaS subscriptions, device fees, transaction commissions, float income | | **Wealth Tech** | Software licenses, commissions, AUM fees | | **AI (Niyogin AI)** | Milestone-based contracts, subscription models | ### **4. Regulatory & Structural Agility** - **Dual entity structure** allows focused compliance and growth. - NBFC entity retains **independent capital-raising ability** (including convertible warrants). - CRISIL rating: **BBB-/Stable** (2024). --- ## **Growth Trajectory & Market Position** ### **Market Opportunity** - **Target Customers**: 63M MSMEs, 70M rural retailers, gig workers, small merchants. - **Key Trends**: Digital onboarding, embedded finance, rural fintech adoption. - **Supportive Infrastructure**: Leverages JAM (Jan Dhan, Aadhaar, Mobile) and India Stack. ### **Competitive Edge** - Operates **above most competitors** as an infrastructure enabler. - **Not in direct competition** with banks or fintechs — instead, powers them. - Focused on **high-growth, high-margin segments**: SaaS, program management, embedded lending. ### **Future Roadmap** - Expand **cross-selling** across Niyogin Ai, NiyoBlu, iServeU, and Moneyfront. - Scale **UPI-based credit infrastructure** and co-lending programs. - Grow **AI business** into a standalone, high-margin vertical. - Continue **M&A strategy** to fill product gaps (e.g., open banking APIs, insurance tech).