NIRO is an early-stage fintech platform that provides embedded credit solutions to consumer internet platforms. Launched in 2021, this Bengaluru-based embedded finance provider enables e-commerce platforms to give credit to their consumers. “Frictionless credit for everyone, to be precise,” says Aditya Kumar, the co-founder & CEO at this fintech startup.
“Given our launch was barely 15 months ago, we have seen unprecedented scale. In the process, we have been able to unlock tremendous growth for consumer internet platforms like Quikr, Snapdeal, Housing, and several others,” says Kumar. “We enable these platforms to leverage their data, distribution, and engagement to deliver frictionless and competitive credit products to their users, driving engagement and value for end consumers, and revenue growth for these platforms. Kumar started his career as an investment banker with Lehman Brothers and later founded Qbera in late 2015. Between the two experiences, he founded an international school in Kolkata and grew his family-owned businesses.
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The early days
Kumar recalls the origin of the idea behind his latest venture, Niro: “Given (a) the low margins in many of their core businesses and (b) that the digital advertising TAM (true addressable market) isn’t large enough to move the needle in terms of their P&Ls, this seemed like a natural path for consumer internet platforms to take. However, incumbents —banks and NBFCs— would struggle to partner with a majority of these platforms owing to (i) narrow segment focus (ii) lack of wide geographical reach, and (iii) absence of product & tech readiness to build a product suited for these consumer internet platforms’ users. Therefore, leveraging consumer internet platforms’ engagement, distribution reach, and data, to me, became an obvious path to scaling an embedded financial services lending franchise.”
Niro’s products and technology enable these platforms to drive stronger customer engagement, create better customer value, and thereby generate material incremental revenue, profitability, and shareholder value. “We’ve also been able to forge strong relationships on the supply side with large lending institutions such as Muthoot Finance, PayU Finance, and L&T Finance. Combining these platforms and lending partnerships with our own product design, and risk management capabilities have allowed us to deliver unprecedented scale best-in-class portfolio performance,” he reveals.
On firm ground
Niro has thus far disbursed over `300 crore of loans across 200+ cities in India and has a monthly origination run rate of over `60 crore. “We are at an annualised revenue run rate of $4 million which, given it has only been 15 months since launch, we are extremely proud of,” says Kumar. Niro raised its seed round of $3.5 million in October 2021, which was led by Elevar Equity and saw participation from notable Angel investors too.
Looking ahead
Over the next year, Niro plans to double originations from `60 crore a month to over `120 crore a month, “which would take our AUM from `300 crore to over `800 crore. This would also result in a trebling of revenues, from $4 million in annualised revenues to $12 million ARR,” he says. On the role of technology, Kumar reiterates: “Technology plays a significant role in enabling every facet of organisational operations; from providing infrastructure for e-commerce platforms to launching credit and other fintech products, risk management, operations & customer support.”
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FRICTIONLESS CREDIT
* Niro enables consumer internet platforms to give credit to their consumers
* Counts Quikr, Snapdeal, Housing, among others, as key customers
* Since its launch, it has disbursed over Rs 300 crore of loans across 200 cities
* Has a monthly origination run rate of Rs 60 crore; aims to double it by next year
* Closed Series A round in April 2023, raised $11 million through a mix of equity and debt