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In a discussion with Tashwinder Singh, CEO & Managing Director, Niyogin Fintech Limited, the conversation focused on the company’s dynamic growth trajectory, innovative approaches, ambitious plans and how it addresses the needs of MSMEs (micro, small and medium enterprises) underserved. in India. When asked about the acquisition of SuperScan, a cutting-edge optical character recognition (OCR) platform developed with AI toolkits, Singh explained: “We are a technology company and we are continually looking for innovators to create better technology stacks. Sometimes it’s easier to acquire something unique rather than build it ourselves. This acquisition allows us not only to use the platform, but also to produce and sell it.
Niyogin’s operations are rooted in technology with a strong emphasis on efficiency and scalability. The company operates a branchless, partnership-led NBFC model that uses technology for customer acquisition, underwriting and collections. Singh said: “Our philosophy is to create operational leverage. We cap fixed expenses and ensure that additional revenue comes with minimal marginal cost. This allows us to scale efficiently while keeping costs under control.
Niyogin has also grown through past acquisitions such as Moneyfront, a wealth management platform, and ISOU Technology, a subsidiary providing banking solutions as a service to banks, fintechs and retailers. The latter powers over 25,000 PINs across India, enabling the delivery of financial services through a robust technology stack.
Meeting the challenges of MSMEs
Addressing the challenges faced by underserved MSMEs, Singh highlighted the severe shortage of capital in India, especially for small businesses with limited credit histories. “We partner with fintechs and other platforms to originate loans. For example, a fintech company that sells accounting solutions to retailers helps us reach these customers. While the partners handle origination, we manage the underwriting and recovery of loans,” he said. This approach eliminates the need for large sales teams, leveraging existing partner networks for greater operational efficiency.
Expanding into small towns and rural areas comes with unique challenges, especially when it comes to collections. Singh highlighted the role of technology in overcoming these obstacles. “The deeper you go, the more difficult and expensive collections become. We have implemented innovative solutions such as QR codes for payments and partnerships for collections. For MSMEs, our average ticket size of 2 to 3 lakh INR provides substantial impact while keeping operations manageable,” Singh revealed.
A remarkable innovation from Niyogin lies in its micro ATM and AEPS (Aadhaar Enabled Payment System) solutions. Retailers are equipped with technologies with no upfront costs, allowing them to offer ATM-like services. Singh explains: “For every transaction, the banks pay us and we share the profits with the retailer. This is a win-win model where retailers win from day one without incurring high costs. This approach aligns with our mission to improve financial inclusion.
Scaling Operations
Looking ahead, Niyogin has ambitious plans for national and international expansion. Singh shares, “Our lending business will continue to grow as we onboard more partners. On the technology side, we see immense potential in international markets like Southeast Asia and the Middle East, where we have already attracted interest.
The company is also enhancing its SaaS offerings, including solutions for prepaid and credit cards. Singh expressed optimism that SaaS revenues will grow exponentially over the next two years.
Discussing the evolving fintech regulatory landscape in India, Singh welcomed the clarity provided by the recent guidelines. “Clear regulations help define boundaries, making it easier to innovate within defined frameworks. Although initial compliance can be difficult, it ultimately creates a more stable ecosystem. Risk creates opportunity, and we embrace that mindset.
However, Singh noted that some norms, such as the 5% risk participation cap for fintechs, could be more accommodating to encourage greater financial inclusion.
The road to follow
Niyogin will focus over the next two years on improving profitability and relevance. Singh outlined their priorities, saying: “We have built the technology stacks we need. It is now a matter of developing these products, encouraging their adoption and expansion on a global scale. Our proofs of concepts in international markets pave the way for future revenue streams.
Ending with advice for budding entrepreneurs, Singh emphasized perseverance. “Entrepreneurship is full of reasons to give up. But remaining committed and agile in the face of challenges is what creates success. Be persistent and adapt to changes, like changing regulations, to stay ahead of the game.” , he concluded.
Niyogin Fintech’s financial performance for the second quarter highlights a bumpy road ahead. For the second quarter of FY25, the adjusted EBITDA loss (excluding ESOP) was consolidated at INR 0.5 crore, a whiff of improvement from the loss of INR 6.6 crore in the first quarter of FY25 and loss of INR 8.2 crores recorded in Q2 FY24. Similarly, non-GAAP profit before tax (PBT) loss (Accounting Principles generally recognized) was also reduced to INR 3.4 crores in Q2 FY25 from INR 9.1 crores in Q1 FY25 and INR 10.1 crores in Q2 FY24 .