Exclusive: Fi in talks to raise Series C round led by Multiples

Bengaluru-based neo banking platform Fi (formerly epiFi) is in talks to raise a new round at a valuation of about $600 million, said two sources aware of the details of the ongoing conversation.

“Private equity fund Multiples has been in talks with Fi to lead a $60-70 million worth Series C round,” said one of the sources requesting anonymity as the discussion is yet to be public. “Multiples is set to give a term sheet which will value Fi in the range of $570-600 million.”

This will be an almost 2X jump in its valuation from its Series B round. According to Fintrackr, the company was valued at $325 million when it raised $50 million led by B Capital. 

Entrackr had exclusively reported its Series B round in October.

Sources indicate that the round is likely to be finalized in a few weeks.

“Fi was trying to raise over $100 million at over $800 million in valuation but the company revised the fundraising plan in the wake of the tough funding situation,” said another source who also requested not to be named.

As per a TechCrunch report, Fi was also in talks with Alpha Wave and Temasek for the Series C round. However, sources indicate that the talks didn’t progress into a deal.

Fi has declined to comment on the story. Queries sent to Multiples didn’t elicit any immediate response. We will update the story as and when they respond.

Founded by former Google Pay executives Sujith Narayanan and Sumit Gwalani, the two and a half-year-old startup provides millennial-focused digital banking solutions with saving accounts.

Neo-banking startups in India are yet to hit critical mass and this is evident from the collection of Fi, Jupiter and Niyo remaining pre-revenue entities in the fiscal year ending March 2021. Fi had recorded zero operating revenue in FY21 whereas its losses ballooned 5.7 X to Rs 50 crore in the same period.