Lending startup Niro shuts down operations

Fintech startup Niro has officially shut down after operating for four and a half years, founder Aditya Kumar announced in a social media post. 

author-image
Shashank Pathak
New Update
Niro

Fintech startup Niro has officially shut down after operating for four and a half years, founder Aditya Kumar announced in a social media post. 

The closure comes despite the company having raised around $20 million over its lifetime from investors including Elevar Equity, GMO Venture Partners, Rebright Partners, Mitsui Sumitomo Insurance VC, and Innoven Capital.

Founded in 2021 by Kumar and Sankalp Mathur, Niro was a B2B2C platform that helped consumer internet companies become consumer finance enablers by offering loans. It used to offer loans between Rs 50,000 and Rs 7 lakh for a tenure of 6 to 72 months with interest rates ranging from 12% to 28%.

According to the company, it built $100 million in assets under management (AUM) in just over 24 months and reached 170 million users at its peak. 

However, regulatory pressure, credit deterioration, and limited capital forced the company to wind down operations. Niro’s model linked consumer platforms with financial institutions, but tightening lending and risk regulations created a volatile environment.

In his farewell message, Kumar acknowledged the challenges but said he would do it all again. 

As per TheKredible, Niro recorded Rs 7.86 crore in revenue in FY24, a sharp decline of 59% from Rs 19.09 crore in FY23. The company’s net loss widened to Rs 48.7 crore in FY24, compared to Rs 36.9 crore in FY23. Its FY25 report has yet to come.

In the past few years, several Indian startups across sectors like gaming, farm-to-fork, social media, and EVs have shut down amid multiple challenges, but the lending space has seen relatively few closures.

Fetch New URL