Niyogin Fintech Acquires 51% Stake in Odisha based Startup iServeU
Niyogin, a BSE listed Fintech company, has acquired a 51% strategic and controlling stake in iServeU for Rs 592 million ($8 million) in a cash plus stock deal. iServeU is an Odisha based startup backed by ‘Startup Odisha’. It is the first Startup Odisha recognised platform to achieve ₹100Cr in valuation and raise $8 Million in funding.
iServeU, a financial inclusion solution provider, enables small village merchants to serve local communities and drive financial inclusion through iServeU’s digital platform. With this acquisition, Niyogin aims to create a full-stack digital platform for the under-served and bring the best in class products and services on the platform.
The start-up was already processing transactions worth nearly $500 million annually. Due to the lockdown, the majority of rural local communities are moving towards digital adoption which has furthered iServeU’s reach. This acquisition will enable Niyogin to get deep market access to the underbanked parts of India.
“We see Niyogin as a long-term strategic partner and are excited about what Niyogin and iServeU can deliver jointly to rural customers and micro-businesses, transform communities, leverage technology to empower people and accelerate much needed financial inclusion in India. The capital infusion will be used to scale and accelerate growth with expanding footprint deeper into rural India and new product innovation”, said Debiprasad Sarangi, Co-Founder and Chief Executive Officer of iServeU Technologies.
Amit Rajpal, Chairman and Co-Founder, Niyogin Fintech, said, “We welcome iServeU and the team to the Niyogin family. They bring with them a unique platform, reach, and experience that will be of immense benefit to Niyogin. We continue to make strategic investments in effectively using technology to bring digital enablement to unserved. Niyogin’s capabilities combined with iServeU’s digital platform strengths will maximise impact to the underserved and unserved customers and allow us to expand product stack and addressable market”.
The acquisition is yet to go through the necessary approvals and customary closing conditions.