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Niyogin Announces Demerger: NBFC and iServeU to List Independently

Niyogin, the publicly listed fintech platform, is undergoing a major structural change. In a significant move to enhance operational focus and growth potential, the company has revealed that its Non-Banking Financial Company (NBFC) arm and iServeU (iSU) will now be listed as independent entities. This marks the beginning of a new chapter for Niyogin, with each business unit carving its own path forward.

Restructuring for Greater Growth

The demerger announcement came with the approval of a composite scheme of arrangement and amalgamation by Niyogin’s board. The plan involves splitting the company’s operations into two distinct parts: Niyogin Fintech Limited (NFL), which will focus on the NBFC business, and iServeU, its 51% subsidiary. Both entities will be listed separately, creating standalone operations with a clear mandate for growth in their respective sectors.

Company founders Amit Rajpal and Gaurav Patankar participated in a special earnings call to explain the strategic importance of this move. Their insights highlighted the intention behind the demerger — to allow both the NBFC business and iServeU to grow independently, exploiting opportunities that are unique to their individual strengths.

Niyogin fintech

“This move will allow both businesses to focus on their core competencies, creating more value for our stakeholders,” said Rajpal during the call. Patankar added, “By listing independently, each entity will have the flexibility to scale and pursue new ventures without the constraints of the other.”

Niyogin Finserv: Scaling the NBFC Business

Niyogin Finserv will now steer the company’s focus towards growing its lending book. As an independent entity, its primary mission will be to expand its footprint in the fintech space, particularly in underserved communities. The company plans to leverage data-driven decision-making and a low cost of client acquisition to scale efficiently.

A key highlight of Niyogin Finserv’s strategy is its commitment to building a high-margin, scalable lending business. With fintech partnerships at its core, the company aims to offer loans to a diverse set of customers, driving growth in a space that continues to present opportunities as traditional financial institutions struggle to serve niche markets.

One of the core advantages of this restructuring is the ability to execute faster, more targeted decisions. “Independence will give Niyogin Finserv more agility to adapt to market demands and expand its operations, making it an even more attractive player in the financial services sector,” said Rajpal.

iServeU: Embracing a SaaS-Based Model

On the other side, iServeU will pivot towards a Software-as-a-Service (SaaS) business model, reducing its reliance on revenue-sharing with partners. This move is designed to provide more predictable and steady growth, allowing iServeU to offer innovative products and services directly to its customers.

With a stronger focus on SaaS, iServeU will look to consolidate its existing customer base while pushing forward with the development of new solutions to serve its partners and clients. The goal is clear: build a more sustainable revenue model that will be less dependent on third-party interactions and more focused on direct customer engagement.

Key Details about the Restructuring:

  • Niyogin Finserv: To scale the NBFC business and expand its lending book through fintech partnerships.
  • iServeU: Transitioning to a SaaS-based model, reducing reliance on “pass-through” revenue sharing.

The restructuring represents a significant shift in how Niyogin operates, but it also demonstrates a clear strategy to unlock long-term value for its shareholders. With both entities now on independent tracks, there is an expectation that they will thrive in their respective fields, pushing boundaries and driving innovation in fintech.

Financial Performance: A Glimpse into Growth

In terms of financial performance, Niyogin has shown positive momentum. The company’s Assets Under Management (AUM) rose to Rs 241.8 crore, marking a modest 2% increase on a quarter-on-quarter basis. Total income for the company grew to Rs 113.2 crore in Q3 FY25, reflecting a striking 110% year-over-year increase and a 55% rise compared to the previous quarter.

However, despite the strong revenue growth, the company faced some challenges. Its adjusted EBITDA (excluding ESOPs) loss for Q3 FY25 was Rs 2 crore, an increase from the loss reported in the previous quarter (Rs 0.5 crore) and the same period last year (Rs 1.4 crore).

While this loss is notable, the company’s board remains optimistic, attributing it to the ongoing investment in growth initiatives, including the restructuring. “The demerger will help streamline operations and, in the long run, create greater value for shareholders,” said Gaurav Patankar, adding that the restructuring will ultimately lead to more efficient resource allocation and better financial health.

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