Neo-bank Fi valued at $315 million after $50 million funding led by B Capital

Neo-bank Fi, which provides digital financial institution accounts and monetary steering to working professionals, has raised $50 million in a brand new funding spherical led by Fb cofounder Eduardo Saverin’s B Capital, with participation from Falcon Edge Capital.

That is its second funding spherical, valuing it at $315 million, a 7x bounce.

Fi had raised $13 million from Ribbit Capital and Sequoia Capital, in a seed spherical final yr.

The newest funding comes after an intermediate capital infusion of about $12 million from current traders, taking the whole to $62 million. In complete, Fi has now raised $75 million since inception.

Sumit Gwalani, cofounder of Fi, mentioned the corporate plans to make use of capital to deliver extra customised merchandise to customers and double down on hiring for its tech crew.

Fi basically focuses on working professionals aged between 22 and 35, providing them free financial savings accounts and help to enhance their financial savings.

At present, the financial institution accounts are powered by Federal Financial institution. Gwalani mentioned the corporate is in talks to onboard extra banks.

“We launched the waitlist for our merchandise across the center of this yr after which have been giving entry to about one out of three or 4 functions. In complete, there have been about 1,000,000 functions within the waitlist. The month-to-month transactions from these customers have been method out of our expectations,” Gwalani mentioned.

The platform is seeing about three-four million month-to-month transactions now, he mentioned.

Fi goals to revamp among the conventional financial savings merchandise like mounted deposits or recurring deposits with its customised answer for working millennials. It additionally provides a debit card to customers.

“We are going to deliver a set of funding merchandise, make it customised and enjoyable,” Gwalani mentioned.

This would come with mutual funds, inventory investments and different merchandise.

“We discovered that eight out of 10 millennials don’t perceive funds and we are attempting to demystify it for them via our technology-led pondering,” he mentioned.

Fi has a crew of about 130-140 individuals, of which 70% is within the tech area.

“Fi is concentrated on serving the urgent monetary wants of 60 million digitally savvy millennials in India. This can be a giant, enticing, and rising market particularly within the backdrop of $180 ARPU (common income per consumer) for high retail banks within the nation,” mentioned Kabir Narang, founding basic companion, B Capital.