Neobanking platform Fi raises $45 Mn in a new round

Consumer-focused neo-banking platform Fi (formerly epiFi) has raised fresh funds in its series C financing round led by exister backer Alpha Wave Ventures. This is the second round for the Bengaluru-based startup in the last nine months.

The board has passed a resolution to allot 2,32,980 Series C Compulsory Convertible Preference Shares (CCPS) to Alpha Wave Ventures at an issue price of Rs 15,239.38 per share to raise Rs 355 crore or $45 million.

In May, Entrackr had reported that Multiples will invest in Fi but the Mumbai-based private equity firm instead led a round in its competitor: Niyo.

As per Fintrackr’s estimates, Fi has raised the fresh capital at a post money valuation of $520 million. The company was valued at $325 million when it raised $50 million led by B Capital. Entrackr was the first to report the development then.

The company is likely to raise more capital in this round and the valuation number may vary accordingly. Led by Google Pay executives – Sujith Narayanan and Sumit Gwalani – Fi provides millennial-focused digital banking solutions with saving accounts. Fi competes with the likes of Jupiter, Niyo, P10 and InstantPay in the consumer-focused neo-banking space.

Besides Fi, Jupiter and Niyo have also managed to mop up large rounds in the past few months. Jitendra Gupta-led Jupiter closed a $86 million round in December whereas Niyo raised a $30 million round earlier this month following a $100 million Series C round in February.

While the investment in consumer-focused neo-banking platforms has gone up, the leading players in this space including Jupiter and Niyo were in pre-revenue stage as of the fiscal year ending on March 31, 2021, or FY21. Fi had reported zero revenue for FY20 and FY21. They are yet to reveal their FY22 numbers.