Neobanking startup Fi raises $50 mn in funding, valuation jumps 7 times

B Capital Group, Falcon Edge and others participated in the Series B funding round that valued Fi at $315 million

Fi, a Bengaluru-based neobank, has raised $50 million at a valuation of $315 million from B Capital Group, Falcon Edge and other investors, in addition to an earlier interim round with existing investors Sequoia Capital and Ribbit Capital. The latest round boosted the fintech startup’s valuation by seven times over its Series A round in 2020 when it was valued at $45 million.

Kabir Narang, founding general partner, B Capital Group, said: “ Fi is focused on serving the financial needs of 60 million digitally savvy millennials in India. This is a large, attractive, and growing market especially in the backdrop of $180 ARPU for top retail banks in the country.”

The company said its app aims to simplify finances for working professionals and is now being opened up to all users. Over a million users had registered on Fi’s waitlist to open a savings account after its early access launch in April. The account is an instant, zero-balance savings account with a debit card issued in partnership with Federal Bank.

Sujith Narayanan, CEO and cofounder, Fi said, “The feedback from users has been encouraging and the app has been well received. We have been focused on delivering a banking experience for digital natives that reflects their personality- simple, smart, fun and flexible.”

In September, Fi was one of the first fintech companies to adopt the Reserve Bank of India’s (RBI) Account Aggregator (AA) framework. Its onnected Accounts feature built on the AA framework will allow users to view their financial data from all of their bank accounts. The feature will be available to all users soon. Additionally, Fi will be rolling out an ‘investments’ feature on the app in the coming months.