NiYO Solutions secures $13.2M in Series A funding, eyes expansion

Meal vouchers and employee benefits solutions provider NiYO Solutions has raised $13.2 million (about 85 crore) in Series-A round from Social Capital; Israel-based JS Capital, which is the family office of Jonathan Soros, and Hong Kong-based venture capital firm Horizon Ventures.
 
The round also saw the participation of its existing investor Prime Venture Partners which had invested $1 million in the company last year. The company has two major products, one for white-collar employees while the second is a cheap savings banking product for blue collar workers.
 
"For white-collar workers, the product is designed for saving taxes and we provide the entire stack of 11 tax saving products as per the IT Act," said Virender Bisht, co-founder at NiYO Solutions.
 
With the fresh funds, the company plans to expand operations to 38 locations from five metro cities currently, along with developing new products and scaling up its technology platform.
 
It works closely with Yes Bank and DCB bank to offer these products to the employees and currently has a user base of about 1,00,000 and a corporate client base of 500. It counts Cafe Coffee Day and Mindtree among its clients.
For blue-collar workers, NiYO Solutions offers a basic savings bank option to employees, offering them a savings bank account with an IFSC code for money transfer and also a debit card for ATM as well as both online and offline transactions.
 
Indian companies have been mostly managing reimbursements in paper form, which requires manual tallying of expenses and can cause leakages. It also discourages employees from filing for exemptions since it requires keeping paper bills for the entire year at a time.
 
NiYO Solutions is targeting this segment and is offering to completely digitise the paper trail, thereby reducing workload and making it easier for employees to claim such benefits.
 
"There are 75 million formal employees in the country and we have set a target of getting one million (ten lakh) users by the end of the year from one lakh now," said Bisht.
 
The company's biggest competitor is Zeta, which works with Sodexo for a meal and other benefits solutions. But unlike Zeta, which offers a prepaid card solution, NiYO Solutions does not require funding of the card at the beginning of the month. Since it offers a credit product, it allows users to set a limit and pay at the end of the month, thereby reducing the financial pressure on the entity.
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