Niyogin Fintech Limited, a publicly listed fintech platform, has announced a major restructuring initiative with the approval of a composite scheme of arrangement and amalgamation. This strategic move will see the separation of its NBFC business and iServeU (iSU), both of which will now function as independently listed entities.
The demerger marks a significant step in Niyogin Fintech’s long-term growth strategy. The newly formed subsidiary, Niyogin Finserv Limited, will oversee the expansion of the NBFC business with a strong focus on fintech partnerships to enhance its lending book. By leveraging data-driven decision-making, reducing client acquisition costs, and expanding access to underserved communities, the company aims to build a high-margin, scalable lending business.
On the other hand, iServeU will transition to an independent, SaaS-based business model. This shift is expected to reduce its reliance on “pass-through” revenue sharing with partners, allowing for steady and predictable growth. The move will also help strengthen existing relationships and enable the exploration of new product offerings.
Company founders Amit Rajpal and Gaurav Patankar actively participated in a special earnings call, highlighting the importance of this strategic restructuring. They emphasized the company’s commitment to transparency, long-term growth, and value creation for stakeholders.
Tashwinder Singh, CEO, and Managing Director of Niyogin Fintech Limited, commented on the development, stating, “I am excited to announce that the Board has approved the proposal for the composite scheme of arrangement and amalgamation among Niyogin Fintech Limited (NFL), Niyogin Finserv Limited (newly incorporated 100% subsidiary) and its 51% subsidiary, iServeU (iSU). As a result, both the NBFC business (along with associated companies) and iSU will be individually listed. This decision reflects our commitment to creating two distinct, agile, and high-performing entities that can independently focus on their strengths, pursue growth opportunities, and deliver enhanced value to our stakeholders.
Despite a strategic transformation, the company reported subdued performance for the quarter. DMT (Domestic Money Transfer) transaction volumes were impacted industry-wide due to tighter KYC norms implemented by regulators. However, the company saw a strong performance in its ‘SaaS’ vertical, with device deployment maintaining a steady run rate of ~50,000 devices per quarter. The contract pipeline also witnessed significant growth, reaching approximately ~7 lakh devices.
Niyogin Fintech secured key contracts with major financial institutions, including Bank of Baroda, Axis Bank, and Suryoday Small Finance Bank, strengthening its presence in the SaaS space. Singh expressed confidence in the company’s strategic initiatives and its potential to achieve long-term success.
As Niyogin Fintech embarks on this new chapter, the company remains optimistic about leveraging its innovative business models and strategic partnerships to drive sustained growth and value creation in the fintech ecosystem.
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