Niro Fintech Startup Officially Closes After 4.5 Years in Operation

Aditya Kumar, the founder of Niro, a promising fintech startup, recently announced the official closure of the company after operating for four and a half years. The announcement has raised eyebrows in the fintech community, as Niro was considered a rising player in the consumer financing space.

Significant Funding and Growth Despite Closure

During its operational period, Niro successfully raised approximately $20 million from notable investors, including Elevar Equity, GMO Venture Partners, and Mitsui Sumitomo Insurance VC. Despite this substantial funding and growth, the company faced insurmountable challenges leading to its decision to close.

Business Model and Offerings of Niro

Founded in 2021 by Kumar and Sankalp Mathur, Niro was a B2B2C platform that transformed internet companies into consumer financing catalysts by offering loans. The platform provided loans ranging from ₹50,000 to ₹7 lakh for terms spanning 6 to 72 months, with interest rates between 12% and 28%.

Remarkable User and Asset Management Growth

Niro quickly built a reputation in the fintech industry, managing to amass $100 million in assets under management (AUM) within just over two years. At its peak, the platform attained a remarkable user base, reaching 170 million users, showcasing its potential in the consumer financing landscape.

Challenges Leading to the Shutdown

Despite its impressive growth, the company confronted various obstacles, including regulatory pressures, credit deterioration, and limited capital. The original model, which linked consumption platforms with financial institutions, became increasingly challenging due to tightening regulations and an unstable credit environment.

Niro’s Financial Performance and Losses

According to recent reports, Niro recorded a significant decline in revenue, generating ₹7.86 crore in fiscal year 2024—down 59% from ₹19.09 crore in fiscal year 2023. The company also reported a widening net loss of ₹48.7 crore during the same fiscal year, compared to ₹36.9 crore in fiscal year 2023.

The Broader Context of Startup Closures in India

In the backdrop of Niro’s closure, several Indian startups across various sectors have struggled and succumbed to challenges. While sectors like gaming, social media, and electric vehicles have experienced closures, the fintech lending space has seen relatively fewer shutdowns, making Niro’s situation noteworthy.