Mumbai, Sep 2: Niyogin, India’s pure publicly listed fintech startup with an end-to-end digital platform empowering small business has announced acquisition of 51% strategic and controlling stake in iServeU for INR 592 M (US$ 8 M) in a cash plus stock deal.
iServeU leverages the full capability of digital platforms and public payments infrastructure to reach the under banked with focus on rural India. The company enables small village merchants to serve local communities and drive financial inclusion through iServeU’s digital platform.
iServeU has seen rapid adoption of its platform and has been processing transactions worth ~US$500m annually on their platform. The transactions and platform adoption have accelerated through the lockdown caused by the COVID-19 pandemic, as rural local communities rapidly moved towards digital adoption.
The acquisition provides Niyogin with deep market access to un/under banked India. Apart from market access for the firms, there are 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 our customers.
“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,” said Amit Rajpal, Chairman and Co-Founder, Niyogin Fintech.
Welcoming the acquisition, Debiprasad Sarangi, Co-Founder and Chief Executive Officer, 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.