Niyogin Fintech Announces Demerger for NBFC and iServeU; Plans Independent Listings Niyogin Fintech Limited will separate its non-banking financial company, Niyogin Finserv Limited (newly incorporated 100 per cent subsidiary) and its 51 per cent subsidiary, iServeU.
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Niyogin Fintech Limited has announced transformation plans with the approval of a composite scheme of arrangement and amalgamation. As part of this move, Niyogin will separate its non-banking financial company (NBFC) business and its 51 per cent-owned subsidiary, iServeU (iSU). These entities will now be listed independently, allowing each to focus on its core strengths and growth opportunities, as per a press release.
Tashwinder Singh, CEO and MD of Niyogin Fintech Limited, emphasized the importance of this restructuring, stating, "I am excited to announce that the Board has approved the proposal for the composite scheme of arrangement and amalgamation among Niyogin Fintech Limited (NFL), Niyogin Finserv Limited (newly incorporated 100 per cent subsidiary) and its 51 per cent subsidiary, iServeU (iSU). As a result, both the NBFC business (along with associated companies) and iSU will be individually listed. This decision reflects our commitment to creating two distinct, agile, and high-performing entities that can independently focus on their strengths, pursue growth opportunities, and deliver enhanced value to our stakeholders."
Under the new structure, Niyogin Finserv Limited will oversee the NBFC business, prioritizing the scaling of its lending operations through fintech partnerships. The subsidiary aims to leverage data-driven decision-making, low client acquisition costs, and broader access to underserved communities to establish a scalable, high-margin lending business.
Meanwhile, iServeU will transition to a SaaS-based business model, reducing reliance on pass-through revenue sharing with partners, a system where revenues from transactions are shared between service providers and intermediaries before reaching the end provider. This shift is expected to ensure steady and predictable growth while enabling iServeU to strengthen existing partnerships and explore new product offerings.
Niyogin's financials for Q3 FY25 showed mixed results. Total income surged to INR 113.2 crore, reflecting a 110 per cent year-on-year (YoY) growth and a 55 per cent quarter-on-quarter (QoQ) rise. However, adjusted total income stood at INR 60.2 crore, showing a 12 per cent YoY increase but a 17 per cent decline from the previous quarter. Adjusted EBITDA (excluding ESOPs) recorded a consolidated loss of INR two crore, compared to losses of 0.5 crore in Q2FY25 and INR 1.4 crore in Q3FY24.
Despite these financial fluctuations, the company remains optimistic about its future. "We are confident that our new strategic initiatives, coupled with the strength of our team, will continue to drive success and help us meet our targets," Singh concluded.
