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Publicly listed fintech platform Niyogin has revealed a strategic shift with the approval of a composite scheme of arrangement and amalgamation. The scheme involves the separation of its NBFC (Non-Banking Financial Company) business and iServeU (iSU), which will now become individually listed entities.
According to Niyogin, the Board has approved the proposal for the composite scheme of arrangement and amalgamation among Niyogin Fintech Limited (NFL), Niyogin Finserv Limited (a newly incorporated 100% subsidiary), and its 51% subsidiary, iServeU (iSU).
Both the NBFC business (along with associated companies) and iSU will be individually listed. This decision reflects the company's commitment to creating two distinct, agile, and high-performing entities that can independently focus on their strengths, pursue growth opportunities, and deliver enhanced value to stakeholders.
Company founders Amit Rajpal and Gaurav Patankar participated in a special earnings call, where they emphasized the significance of this strategic decision and outlined the company's path forward. Their active engagement and deep insights reinforced Niyogin’s commitment to transparency, long-term growth, and value creation for stakeholders, underscoring the pivotal role of this decision in shaping the company's future trajectory.
Following the restructuring, the newly formed subsidiary, Niyogin Finserv, will focus on scaling the NBFC business by expanding its lending book through fintech partnerships. The company aims to leverage data-driven decision-making, a low client acquisition cost, and expanded access to underserved communities to establish a high-margin, scalable lending business.
Meanwhile, iServeU will operate independently, transitioning to a SaaS-based business model. This approach will reduce dependency on "pass-through" revenue sharing with partners, allowing iServeU to expand steadily and predictably while strengthening existing connections and exploring new product offerings.
Niyogin’s Assets Under Management (AUM) stand at Rs 241.8 crore, up 2% QoQ. Total income grew to Rs 113.2 crore in Q3 FY25, marking a 110% YoY increase and a 55% QoQ rise. The company’s adjusted EBITDA (Ex-ESOP) loss consolidated to Rs 2 crore in Q3 FY25, compared to a Rs 0.5 crore loss in Q2 FY25 and a Rs. 1.4 crore loss in Q3 FY24.