RapiPay bags $15 million to launch digital banking super app

Fintech firm RapiPay on Tuesday said it has raised $15 million in an extension of pre-Series A funding round to enter digital banking with its super app — NYE. Varun Jaipuria (RJ Corp), DLF Family Office, Rahul Gautam (Sheela Foam) and Rohan Kumar (DS Group) participated in this round.

Founded in 2019, RapiPay is among a clutch of impact startups such as Dvara KGFS, Spice Money, FIA Global, PayNearby, WeRize and others, who offer agent-based, assisted payment solutions to drive financial inclusion in rural India.

RapiPay, which primarily provides banking services like cash withdrawal or deposits, micro ATMs, point-of-sale devices, loans, insurance and utility payments for rural merchants, is adding a business-to-consumer (B2C) layer with its super app — NYE.

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"Entering the B2C market with NYE is a natural business progression. The fresh capital will be used for building a robust digital financial ecosystem in the country for both consumers and businesses," said Yogendra Kashyap, co-founder and managing director, RapiPay.

For the super app, the fintech startup plans to leverage its retail network of 6 million merchants for all their requirements from operating bank accounts and accepting payments to offering 'Buy Now, Pay Later' solutions.

Overall, it expects to add two million bank accounts to reach 150 million unique customers and scale daily transactions from one million to 3.5 million by 2025.

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Besides the digital banking play, RapiPay wants to strengthen its existing 'phygital' presence by increasing the number of door-step banking agents from 5 lakh to 20 lakh by 2025.

In addition to assisted payment services via agents, the startup plans to install one million point-of-sale machines to facilitate offline-to-online payments.