Fintech platform novio, the consumer application from Credilio, has successfully raised ₹100 crore in its Series A funding round. The investment was led by existing backer Cornerstone Ventures and is aimed at expanding the reach of its innovative UPI-first, fixed-deposit-backed credit card. This strategic capital infusion will fuel the company's mission to make formal credit accessible to millions of underserved consumers across India.
Strategic Funding to Bridge India's Credit Gap
The funding round was spearheaded by Cornerstone Ventures, with significant participation from Shepherd’s Hill Private Equity, ESV-Arthya AIF, and Roots Ventures. The ₹100 crore capital infusion also includes a venture debt component from prominent firms Innoven Capital and Alteria Capital. This financial backing underscores strong investor confidence in novio's mission to democratize credit access throughout the country.
Innovating Credit Access for the Underserved
novio's platform provides a RuPay credit card secured against a fixed deposit, bypassing the need for income proof or credit history. This approach specifically targets the 45 crore UPI users often overlooked by traditional lenders, including early jobbers, students, and freelancers. The model effectively bridges a critical gap in India's formal credit market by offering an accessible entry point.
Users can quickly open a fixed deposit via the novio app and receive a premium credit card that links directly to UPI for seamless payments. The platform provides benefits typically associated with high-end cards, such as rewards and airport lounge access. Meanwhile, the customer's underlying deposit continues to accrue up to 7% annual interest, offering a dual financial advantage.
Ambitious Growth and Market Expansion
With this new capital, novio plans to aggressively scale its distribution network, focusing on Tier 2 to Tier 5 cities where credit penetration is minimal. The company has set a bold target of issuing 50 lakh credit cards within the next three years. This expansion is central to its strategy of bringing formal credit to previously unbanked and underbanked regions of India.
The platform has already demonstrated significant market appeal, attracting over 100,000 active cardholders in less than a year of operation. Company data indicates strong user engagement, with a reported 85% of users active on a monthly basis. This early success highlights the strong demand for accessible and user-friendly credit solutions in the current market.
Future Product Development and Partnerships
Looking ahead, novio is set to launch an unsecured credit card in collaboration with YES Bank, rewarding users who demonstrate good repayment behavior. The company is also enhancing its platform with EMI options and an AI-driven credit advisory service. These features are designed to help customers build stronger credit profiles and achieve greater financial inclusion.
According to CEO Aditya Gupta, the platform was built to provide seamless credit access without compromising on rewards or the user experience. He noted that by linking credit limits to a fixed deposit, users can avoid overspending and the perception of a debt trap. This approach empowers consumers to manage their credit responsibly while enjoying premium benefits.
This Series A funding marks a pivotal moment for novio, equipping it to challenge the traditional credit landscape in India. By focusing on financial inclusion with its innovative secured credit card model, the company is well-positioned for significant growth. Its efforts could play a crucial role in bringing millions of underserved consumers into the formal credit ecosystem.