Fintech startup Niro shuts business amid regulatory hurdles, funding crunch

Bengaluru-based fintech startup Niro which helped consumer internet platforms offer embedded credit products, has shut down its business after 4.5 years of operations.

“$20 Mn in funding, $200 Mn in loan disbursements, 30 partnerships and 4.5 years later – we’ve had to shut down Niro,” the startup’s founder Aditya Kumar said in a LinkedIn post. 

Kumar attributed the shutdown to regulatory changes, a capital crunch, and a decline in credit quality. He explained, “A perfect storm of regulatory pushback on personal lending, credit deterioration, and sub-optimal capitalization forced us to pivot our business model—successfully—but just as capital ran out. Despite exploring global investors and potential local partners, I wasn’t able to bring this one home.”

Read also- Contrails AI secures $1 Mn in Pre-Seed Round

Kumar shared that Niro reached 170 million users at its peak and achieved an AUM of $100 million within just 24 months of its launch.

According to tracxn data, the startup raised a total of $18.7 million across four funding rounds, reaching a valuation of $58.4 million.

A seasoned fintech entrepreneur, Kumar previously founded Qbera, a digital lending platform acquired by InCred, where he later led the company’s consumer lending division.

Founded in 2021 by Aditya Kumar and Sankalp Mathur, Niro is backed by investors including Elevar Equity, GMO Venture Partners, Rebright Partners, Mitsui Sumitomo Insurance VC, Innoven Capital, Alteria Capital and CRED founder Kunal Shah.

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The startup reported an operating revenue of ₹9.5 crore in FY23, with a net loss of ₹23.8 crore for the same period.

With its shutdown, Niro joins other startups such as Beepkart, Otipy, and Blip that have ceased operations in 2025.

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