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Former Google Pay execs raise $13.2M to build neo-banking platform for millennials in India – Internet 1

Two co-founders of Google Pay in India are constructing a neo-banking platform in the nation — they usually have already secured backing from three high VC funds.

Sujith Narayanan, a veteran funds government who co-founded Google Pay in India (previously generally known as Google Tez), mentioned on Monday that his startup, epiFi, has raised $13.2 million in its Seed monetary spherical led by Sequoia India and Ribbit Capital. The spherical valued epiFi at about $50 million.

David Velez, the founding father of Brazil-based neo-banking big Nubank, Kunal Shah, who’s constructing his second funds startup CRED in India, and VC fund Hillhouse Capital additionally participated in the spherical.

The eight-month-old startup is engaged on a neo-banking platform that can give attention to serving millennials in India, mentioned Narayanan, in an interview with TechCrunch.

“When we were building Google Tez, we realized that a consumer’s financial journey extends beyond digital payments. They want insurance, lending, investment opportunities and multiple products,” he defined.

The thought, in half, is to additionally assist customers higher perceive how they’re spending cash, and information them to make higher investments and enhance their financial savings, he mentioned.

At this second, it’s unclear what the convergence of all of those options would seem like. But Narayanan mentioned epiFi will launch an app in a number of months.

Working with Narayanan on epiFi is Sumit Gwalani, who serves because the startup’s co-founder and chief product and expertise officer. Gwalani beforehand labored as a director of product administration at Google India and helped conceptualize Google Tez. In a joint interview, Gwalani mentioned the startup at the moment has about two-dozen staff, a few of whom have joined from Netflix, Flipkart, and PayPal.

Shailesh Lakhani, Managing Director of Sequoia Capital India, mentioned a few of the basic client banking merchandise equivalent to financial savings accounts haven’t seen true innovation in a few years. “Their vision to reimagine consumer banking, by providing a modern banking product with epiFi, has the potential to bring a step function change in experience for digitally savvy consumers,” he mentioned.

Cash dominates transactions in India immediately. But New Delhi’s transfer to invalidate most paper payments in circulation in late 2016 pushed tens of hundreds of thousands of Indians to discover funds app for the primary time.

In latest years, scores of startups and Silicon Valley corporations have stepped to assist Indians pay digitally and safe a variety of economic providers. And all indicators counsel {that a} vital variety of individuals are actually snug with cellular funds: More than 100 million customers collectively remodeled 1 billion digital funds transaction in October final yr — a milestone the nation has sustained in the months since.

A handful of startups are additionally making an attempt to deal with a few of the challenges that small and medium sized companies face. Bangalore-based Open, NiYo, and RazorPay present a variety of options equivalent to company bank cards, a single dashboard to handle transactions and the power to automate recurring payouts that conventional banks don’t at the moment supply. These platforms are also called neo-bank or challenger banks or various banks. Interestingly, most neo-banking platforms in South Asia immediately serve startups and companies — not people.

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