Niyo acquires wealth-tech startup Goalwise; to expand offerings in mutual fund segment

In a bid to expand its product offering to the millennials, Niyo, one of India's leading digital banking fin-tech startup, has acquired Goalwise, a new-age mutual funds investment platform.

Niyo says the COVID-19 pandemic has significantly increased the demand for digital banking and related services and it plans to expand its user base through a mobile app experience and innovative product suite that will now include wealth management products.

Niyo co-founders -- Vinay Bagri and Virender Bisht -- have picked up majority stakes in the startup, along with Niyo, in a cash-and-stock deal for an undisclosed amount. Goalwise founding members will join Niyo’s leadership team and will be running ‘Niyo Wealth’ as an independent vertical within Niyo.

The acquisition is in line with Niyo’s goal of building a comprehensive product suite for its users. Apart from DIY zero percent commission mutual fund product that are already live on Niyo Wealth platform, the company also plans to launch international and domestic stocks, robo-advisory and auto-invest products in the next few months.

Founded in 2015, Niyo offers co-branded products in partnership with leading banks in India. Its products include a Payroll card for blue collared employees, Global card for international travellers and a savings account for millennials.

Vinay Bagri, co-founder & CEO, Niyo said, “We are delighted to welcome Goalwise and the entire team to the Niyo family. It has been our constant endeavour to offer the best financial products to our consumers and make the banking process easy, secure and convenient for all."

We strongly believe in the importance of investing and helping our customers achieve their life goals of financial stability and independence. The acquisition of Goalwise is a significant step in that direction.”

With over 60,000 users with Rs 850 crore assets under advice, Goalwise primarily caters to salaried millennials belonging to Tier-1 cities with median income of Rs 10 lakh.

The startup claims to offer a unique set-and-forget goal-based investing solution that oversees all aspects of investment, including mutual fund selection, portfolio rebalancing and target-tracking, among others.

Swapnil Bhaskar, co-founder and CEO, Goalwise, said, “We, at Goalwise, have always believed in transparency and building best-in-class products that will empower our customers to make better financial decisions."

"Niyo believes in the same values which made this merger a natural fit. With our combined resources, we will now be able to accelerate our road map for advanced features and inclusion of many more financial products. Together, we are set to fulfil the dreams of a million Indians to achieve their financial goals.”

Niyo claims to be one of the first fin-tech companies in India to launch a co-branded savings account in partnership with IDFC FIRST Bank that combines banking, forex and wealth management features in its 007 proposition – zero percent commission on mutual funds, zero percent forex mark-up on international spends and up to 7 percent interest on the savings account through a waitlist that was subscribed by about 1 lakh people.

According to industry reports, Indians have parked more than $1.8 trillion of their wealth in low-yield bank deposits, which indicates that they refrain from investing in capital markets owing to poor financial literacy, low trust in the stock market, poor user experience and general disinterest.

Niyo says its aim is to empower them through its latest product offering that will offer higher rates of interest and encourage investment in mutual funds.

Among the fastest growing fin-tech startups in India, Niyo has a customer base of 1.5 million and 6,000-plus corporates. The company is backed by marquee investors such as Social+Capital, JS Capital and Prime Venture Partners, and has raised about $49 million in funding so far. The venture has also been ranked among Asia’s Top 50 soonicorns.