BSE listed, fintech company Niyogin, has acquired a 51% strategic and controlling stake in iServeU for Rs 592 million ($8 million) in a cash plus stock deal.
Niyogin's vision is to create a full-stack digital platform for the underserved and bring best in class products and services on the platform. Niyogin has been scaling its unique platform through a network of financial professionals along with products such as wealth, credit and other SaaS-based products that help digitise small businesses.
Financial inclusion solution provider, iServeU enables small village merchants to serve local communities and drive financial inclusion through iServeU’s digital platform.
Already processing transactions worth ~$500 million annually on its platform, iServeU claims that transactions and platform adoption have accelerated through the lockdown as rural local communities rapidly moved towards digital adoption.
The acquisition not only provides Niyogin with deep market access to under banked India, but also offers multiple product complementarities such as credit, digital wealth, and payments among others which the two companies can jointly access to create a strong full-stack fintech value proposition for its customers, believes Amit Rajpal, Chairman and Co-Founder, Niyogin Fintech.
"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 maximize impact to the underserved and unserved customers and allow us to expand product stack and addressable market," he said.
Welcoming the acquisition, Debiprasad Sarangi, Co-Founder and Chief Executive Officer of iServeU Technologies said, "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."
The acquisition is subject to necessary approvals and customary closing conditions. Equirus
Capital acted as the exclusive financial advisor to iServeU for this transaction.
Niyogin Fintech currently offers credit and non-credit products including India’s leading Digital wealth platform under the brand "Moneyfront" and has over $100 M in assets under administration.
First Published: IST