Embedded finance startup Niro raised $11 million, in a mix of equity and debt, as part of its Series A where $2.5 million was secured through venture debt from Innoven Capital and the equity fundraise saw participation from a consortium of institutional investors such as Elevar Equity, GMO Venture Partners, Rebright Partners, and Mitsui Sumitomo Insurance VC, among others.
Aditya Kumar, CEO and cofounder of Niro, told Inc42 that the startup will use the funding to support growth initiatives as well as enhance and expand its product offerings.
The startup also intends to use the funds to strengthen its tech vertical and make strategic investments to improve its risk and analytics capabilities.
The fintech startup also intends to hire more personnel for its sales and operations verticals, as well as a senior executive for the data and analytics segment.
“I’m ecstatic, and it feels fantastic.” The new round comes nearly 18 months after our previous fundraiser, which is significant given the current funding climate. “I believe it is a validation and testament to the work we have done in the past,” Kumar said.
Aditya Kumar and Sankalp Mathur founded Niro in 2021 to provide embedded lending solutions for users of consumer internet platforms. To drive revenue growth, the startup enables consumer businesses to embed customised credit offerings.
Since then, the startup has expanded its operations to disburse more than INR 300 crore in loans across 200+ cities in India. It has a monthly origination run rate of more than 60 million dollars and an annualised run rate (ARR) of $4 million dollars.
To provide loans to its customers, it collaborates with NBFCs such as L&T Finance and Muthoot Finance. It also claims to have onboarded a slew of consumer businesses, including Snapdeal, Quikr, and Housing.com.
Niro’s headcount has increased from 15 to 30 in the last two quarters as a result of the company’s growth. Kumar also told Inc42 that the company expects a threefold increase in all metrics over the next year. Furthermore, the company intends to achieve a $1 billion balance sheet (in terms of the portfolio managed by Niro) within the next three years.