Niro Calls It Quits: What Happened to the Promising Lending Startup? In a surprising development, Bengaluru-based lending startup Niro has officially shut down operations, despite raising an impressive
In a surprising development, Bengaluru-based lending startup Niro has officially shut down operations, despite raising an impressive $20 million in funding. Founded in 2021 by Aditya Kumar and Sankalp Mathur, Niro made waves in the fintech space by enabling consumer internet companies to offer embedded credit solutions to their users.
Niro’s journey was nothing short of remarkable. In just two years, the B2B2C platform disbursed loans worth ₹200 crore across 30 partnerships and built assets under management (AUM) of $100 million. At its peak, the company reportedly witnessed over 170 million user flows.
The startup worked with leading internet platforms and partnered with financial institutions to offer personal loans ranging from ₹50,000 to ₹7 lakh, with flexible repayment tenures between 6 to 72 months and interest rates from 12% to 28%.
Despite these achievements, Niro faced mounting challenges. According to founder Aditya Kumar, a combination of regulatory hurdles, credit risks, and capital constraints made it unsustainable to continue.
Kumar said, “We had done the impossible,” highlighting the scale and speed at which Niro operated despite tough market conditions. However, these external factors eventually forced the startup to make the difficult decision to cease operations.
Niro attracted strong investor confidence from names like Elevar Equity, GMO Venture Partners, Rebright Partners, Mitsui Sumitomo Insurance VC, and Innoven Capital. These backers supported the startup’s vision to innovate in embedded lending and expand financial access through technology.
While Niro’s closure is a setback, it shines a light on the challenges fintech startups face in a tightly regulated, capital-intensive sector. Embedded credit continues to be a promising space, and Niro’s experience will likely guide future ventures looking to innovate in this domain.
Niro’s story is a testament to the highs and lows of startup life — rapid growth, bold innovation, and the harsh realities of the market. Though it’s shutting down, the founders leave behind a legacy of “doing the impossible” in India’s fintech landscape.
