Niyogin: A Digital Partner for Financial Inclusivity & MSME Success

 Tashwinder Singh,     CEO & MDIn India, SMEs drive significant economic growth, contributing substantially to GDP, employment, and exports. With around 106 million employees, they form a vital part of the workforce, second only to agriculture. Globally, SMEs are increasingly venturing into international markets via digital platforms, leveraging e-commerce to overcome barriers and engage foreign clients.Success hinges on innovation, differentiation, and robust supply chain management. Partnerships, risk mitigation, and government support are pivotal in SMEs' global expansion. Collaborations with NBFCs and banks are anticipated to enhance credit access, fostering financial inclusivity in the sector. Customers in the SME lending industry often confront challenges such as complex and time-consuming application processes, limited access to affordable credit, navigating varying interest rates, and dealing with stringent eligibility criteria set by financial institutions.

Niyogin stands as a pioneering Neobank platform infrastructure company, dedicated to empowering India's MSMEs and rural population. By providing holistic solutions encompassing credit, financial inclusion, investments, and SaaS services, Niyogin bridges gaps that hinder growth. The company’s partnerled model ensures affordability and access, while innovative technology solves challenges for traditionally underserved segments, fostering income augmentation for small businesses and delivering impactful products and services.

Bridging Gaps, Empowering Growth
Niyogin emerged through the acquisition of M3 Global Finance, subsequently renamed Niyogin Fintech Limited by Information Interface India Private Limited. Under new ownership, the company secured Rs.2,348 Mn in capital from institutional investors to fuel its fintech growth. Leveraging cutting edge technology, Niyogin empowers partners with white-labeled solutions, enabling local banking, payments, and financial services. AI and ML are harnessed to enhance lending operations, automating processes, improving risk assessment, and enabling microloans for under served communities. “Through its 'Partnerled' model, exemplified by IserveU, Niyogin has achieved impactful financial inclusion while expanding its suite of products and services”, adds Tashwinder Singh, MD & CEO.

Niyogin offers a diverse range of services within SME lending, catering to both unsecured and secured loans. The company's lending portfolio encompasses innovative co-lending products such as shortterm supply chain financing, DMT wallet funding, wage access solutions, term loans tailored for kirana stores and MSME retailers, as well as specialized offerings for rural livestock farmers and solar panel financing. “This comprehensive suite of products reflects Niyogin's commitment to addressing varied needs across different sectors of the SME landscape”, speaks Tashwinder.

Niyogin distinguishes itself through a forward-looking credit approach, setting it apart from traditional NBFCs. By eschewing brick-and-mortar branches, the company champions digital engagement and employs a partnership driven strategy. This unique model allows Niyogin to remain asset light, tapping into the cost-efficient potential of the market. Collaborating with multiple Chartered Accountant partners, each representing a substantial pool of MSME clients, Niyogin enhances its reach. This partnership synergy enables Niyogin to digitally deliver credit and financial services via its NiyoBlu platform, while its lending decisions benefit from a wealth of diversified data sources. This dual infrastructure not only reduces customer acquisition costs but also refines underwriting, curbing default rates and overall lending expenses. Ultimately, Niyogin thrives as a digital lending player with an NBFC license, maximizing both physical and digital infrastructure to empower India's MSME sector.

Niyogin's future roadmap entails transitioning into a premier Banking as a Service (BaaS) platform, building on its neobank product stack. Following a strong foundation laid in FY2023, the company aims to expand operations and establish a robust market presence in FY2024. The ultimate goal for FY2025 is sustainable profitability, creating enduring value for stakeholders in a dynamic business landscape.