Neobanking fintech FiMoney pivots to B2B, lays off staff in consumer business

FiMoney pivots to B2B model

• Fi Money pivots to B2B model, laying off around 40 percent of staff
• Focus shifts to AI and deep tech for startups and enterprises
• Some products will be discontinued as company restructures

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Peak XV and Temasek-backed fintech platform Fi Money have pivoted towards a business-to-business (B2B) model while laying off a few employees, the company founder Sujith Narayanan said in a LinkedIn post.

He said that the company will continue its work on deep technology, artificial intelligence (AI), and building complex systems for startups and large enterprises. While FiMoney will continue to run its consumer business, its focus will remain at the intersection of AI and B2B, Narayanan added in the post.

“What became clear is that not every bet paid off the way we hoped. The ambition was right, but some paths taught us harder lessons. We have done a lot of honest reflection as a leadership team,” Narayanan wrote in the social media post.

Neobank firms promised a premium, fully digital savings account, customer service and banking assistance without ever visiting a branch. However, most of them have struggled and pivoted to money management apps, covering payments and savings, as well as investments. Their core business happens to be co-branded cards with their banking partners.

“As we realign, some products will be sunset and thus a few roles are being impacted. This is not about effort or talent. It’s about how the company needs to be structured going forward,” Narayanan said in the post.

He added that the company will treat the transition with respect, clarity, and support. “Building a company isn’t a straight line. This is a moment of choosing long-term conviction,” he said.

According to a source close to the development, the company has laid off around 40 per cent of its staff. FiMoney did not respond to Moneycontrol’s specific queries on what the pivot means and how many employees were laid off.

Founded in 2019, FiMoney has raised $170 million at around $500 million valuation. Narayanan was the co-founder of Google Pay, then called Tez, the UPI payment app from the search giant.

Narayanan’s current LinkedIn bio says he is quietly building in AI, while loud outcomes will follow soon. His cofounder is Sumit Gwalaan, who was director of product management at Google Pay.

Neobanks are usually digital-only banks with no physical presence, offering similar or identical banking services to their customers.

Theoretically, neobanks provide a technology layer on top of the banks, delivering better and faster financial services products and offerings to their customers. However, since they are not recognised or regulated, they need to partner with banks and other financial institutions to offer these products and services.