Accel-backed neobanking startup Niyo shifts gear, will become a travel tech platform

Niyo, a neobanking startup backed by the likes of Accel and Lightrock, is planning to launch a travel tech platform in the next few weeks, people familiar with the development said. The startup aims to build on the success of its global forex card as it ventures into the travel industry.

Niyo’s decision to venture into a new industry comes at a time when fintech startups across the board have been adjusting to a dynamic regulatory environment, especially around digital lending. All loan disbursals and repayments have to now be executed only between the bank account of the borrower and the regulated entity, without any involvement of a pass-through or pool account of the lending service provider (LSP) or any third party, the Reserve Bank of India stated. The rule rendered prepaid payment instruments (PPIs) useless and forced several fintechs to tweak their business models.

Currently, the Accel-backed startup allows customers to open their own savings bank accounts. It also has an investing platform, Niyo Money, and offers several other banking-related services. Niyo was founded in 2015 by Vinay Bagri, who has had stints with banks such as Standard Chartered and Kotak Mahindra, and Virender Bisht, who previously worked with MakeMyTrip.