India, February 10th, 2025 – Niyogin Fintech Limited, a publicly listed fintech platform, has revealed a significant 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 be individually listed entities.
Tashwinder Singh, CEO, and Managing Director of Niyogin Fintech Limited, commented on the development, stating, “I am excited to announce that the Board has approved the proposal for the composite scheme of arrangement and amalgamation among Niyogin Fintech Limited (NFL), Niyogin Finserv Limited (newly incorporated 100% subsidiary) and its 51% subsidiary, iServeU (iSU). As a result, both the NBFC business (along with associated companies) and iSU will be individually listed. This decision reflects our 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 our stakeholders.
Both company founders, Amit Rajpal and Gaurav Patankar, participated in the special earnings call, where they emphasized the significance of this strategic decision and outlined the path forward for the company. Their active engagement and deep insights reinforced the company’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 Limited, will manage the scaling of the NBFC company, with a strong focus on extending its lending book through fintech partnerships. The company aspires to combine 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, shifting to a SaaS-based business model. This approach will lessen dependency on “pass-through” revenue sharing with partners, allowing iServeU to expand steadily and predictably while strengthening existing connections and exploring new product offerings.
Turning to this quarter’s performance, it has been subdued. DMT (Domestic Money Transfer) transaction volumes were impacted industry-wide due to the implementation of tighter KYC norms by the regulator. This weakness was partially offset by strong performance in the ‘SaaS’ vertical, where device deployment held steady in line with guidance, maintaining a run rate of ~50,000 devices per quarter. We saw strong traction in our contract pipeline, which has now grown to approximately ~ 7 lakh devices. We also recorded key wins in the ‘SaaS’ vertical with new contracts from Bank of Baroda, Axis Bank and Suryoday SFB to name a few. We are confident that our new strategic initiatives, coupled with the strength of our team, will continue to drive success and help us meet our targets.”
Key Highlights of Q3FY25
• AUM stands at Rs. 241.8 Crores* , up 2% QoQ
• Total Income grew to Rs. 113.2 Crores in Q3FY25, up 110% YoY and up 55% QoQ
• Adj. Total income** stood at Rs. 60.2 Crores in Q3FY25, up 12% YoY and down 17% QoQ
• Adjusted EBITDA (Ex-ESOP) loss consolidated in Q3FY25 to Rs. 2.0 Crores compared to Rs. 0.5 Crores loss in Q2FY25 and Rs. 1.4 Crores loss in Q3FY24
• Non-GAAP PBT loss was Rs. 4.6 Crores in Q3FY25, compared to Rs. 3.4 Crores loss in Q2FY25 and Rs. 4.5 Crores loss in Q3FY24
