Novio, a fintech startup specializing in credit solutions for the underserved, has raised Rs 100 crore ($10.5 million) in a Series A funding round. The investment was led by Cornerstone Ventures, with significant participation from Shepherd’s Hill Private Equity, ESV-Arthya AIF, and Roots Ventures. The capital infusion also includes venture debt components from Innoven Capital and Alteria Capital.
The company plans to utilize the fresh capital to aggressively expand its footprint into Tier II through Tier V markets. Key operational priorities include deepening existing banking partnerships and upgrading its technology stack to integrate UPI capabilities and AI-driven credit advisory services.
Bridging the Credit Gap
Founded in 2024 by Aditya Gupta, Sandeep Ghule, Anand Kapadia, and Manish Sinha, Novio addresses the “thin-file” customer segment—individuals who lack a formal credit history or steady income documentation.
The startup’s core product allows users to open a fixed deposit (FD) via its mobile application, which instantly serves as collateral for a RuPay credit card. This model removes traditional barriers to entry:
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No Income Proof: Approval is based on the deposit rather than salary slips.
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No Credit Checks: Accessibility for first-time borrowers.
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Wealth Building: Users earn interest on their deposit while building a credit score.
Market Traction and Growth
Novio currently collaborates with institutional partners including SBM Bank and DCB Bank to facilitate card issuance. Within its first year of operations, the startup has reported a milestone of 1 lakh active cardholders.
“Our goal is to democratize access to formal credit by leveraging the security of fixed deposits,” the founders noted. “By integrating with the UPI ecosystem, we are providing a seamless payment experience that combines the benefits of traditional banking with modern fintech flexibility.”
Looking ahead, Novio has set a target to issue 50 lakh cards over the next three years, positioning itself as a primary gateway for financial inclusion in India’s emerging markets.
By: Sandhya Bharti
