Travel-focused fintech company Niyo has signed a definitive agreement to acquire the foreign exchange and cross-border payments business of Capital India Finance, operated under the RemitX brand, for ₹11.4 crore. The transaction will be executed through Niyo’s wholly owned subsidiary Kanji Forex, which holds an RBI Authorised Dealer Category-II licence. This move strengthens Niyo’s regulated forex capabilities, extends its distribution reach across new Indian markets, and positions the company to serve rising demand for foreign exchange services.
Deal Terms and Timeline
The deal involves the transfer of RemitX assets to Kanji Forex and is expected to close by October 31, 2026, subject to regulatory approvals and other conditions. Capital India Finance’s board has already approved the asset transfer, and the company will surrender its AD-II licence after completion. The divestment supports Capital India Finance’s strategy to consolidate operations and focus on its NBFC platform and RapiPay digital businesses.
Branch and Partner Expansion
RemitX brings 32 branches across 16 states and more than 30 cities into Niyo’s network, taking the fintech’s physical footprint to over 40 locations nationwide. It also adds more than 2,500 distribution partners, including travel agents, overseas education consultants, and corporate clients. Over 200 RemitX employees, including members of its leadership team, are expected to join Kanji Forex once the transaction is completed.
Strategic Rationale
Niyo plans to combine its digital platform for international travel and cross-border payments with RemitX’s branch-led and partner-led distribution model. The combined business will offer foreign currency, forex cards, and outward remittance services through both physical branches and digital channels. The expanded network is expected to help Niyo serve growing demand in Tier II and Tier III cities for overseas travel and education.
Financial Impact and Strategic Push
RemitX contributed ₹24.9 crore to Capital India Finance’s consolidated turnover in FY26, accounting for 4.68 percent of the total. The forex business had net assets of ₹28.3 crore as of March 31, 2026. The acquisition is the latest step in Niyo’s broader push into regulated forex services and cross-border payments, and it reflects the company’s ambition to expand its market presence.
Regulatory Context
Niyo entered the regulated forex market through its earlier acquisition of Mumbai-based Kanji Forex, gaining access to an AD-II licence. The Reserve Bank of India recently granted Kanji Forex a perpetual AD-II licence with an expanded scope covering additional remittance services. This licence also allows branch network expansion without separate approval for every new location, and it follows the RBI’s May 2026 revision of the AD-II framework to cover more non-trade current-account transactions.
Company Performance and Investors
Founded in 2015 by Vinay Bagri and Virender Bisht, Niyo offers digital banking and travel-related financial services including international cards, outward remittances, travel insurance, and eSIMs. The company has raised close to $180 million from investors such as Accel, Lightrock, Multiples, Tencent, and Prime Venture Partners. In FY25, Niyo narrowed its net loss by about 46 percent to ₹77.8 crore while operating revenue rose 32 percent year on year to ₹123.4 crore.
By acquiring RemitX, Niyo is positioning itself to combine digital convenience with physical distribution in India’s evolving cross-border payments landscape. The transaction provides immediate scale in branch count, partner relationships, and regulatory strength. If completed as planned, it will support Niyo’s ambition to reach a broader customer base and build a stronger nationwide forex network.