Fi, a new-age, app-only banking startup founded by former Google Pay executives, said on November 1 that it has raised $50 million in a round led by B Capital and Falcon Edge Capital, valuing the two-year-old startup at $315 million.
Moneycontrol first reported discussions and B Capital’s interest on November 21.
Fi, founded by Sujith Narayanan and Sumit Gwalani, offers a zero-balance savings account aimed at working professionals to simplify their banking and savings. While it was invite-only until recently, it has now opened up to all users.
“The feedback from users has been encouraging and the app has been well received. We have been focused on delivering a banking experience for digital natives that reflects their personality: simple, smart, fun and flexible. So, we are going to continue to build on our proposition through ecosystem partnerships and new offerings,” Narayanan said.
While Fi does not have a banking licence, it has partnered with Federal Bank for customers to open bank accounts, with Fi running the app and related services.
Fi is among a slew of neobanking startups seeking to disrupt traditional banks, which are offline-heavy, often don’t have enough of a digital presence and run on stodgy and sometimes bureaucratic processes.
“This is a large, attractive and growing market, especially in the backdrop of $180 ARPU (average revenue per user) for top retail banks in the country. Fi is building a modern banking product that is receiving rave reviews from users of the Fi app and debit card,” said Kabir Narang, founding general partner at B Capital Group.
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