The name of the wholly owned subsidiary will be Niyogin Finserv, Niyogin Financial Services, or another name approved by the Central Registration Centre or the Ministry of Corporate Affairs. The subsidiary will focus on providing financial services.
The authorized share capital of the subsidiary is set at Rs 1,00,000, divided into 10,000 equity shares of Rs 10 each. Niyogin Fintech will subscribe 100% of the initial share capital in cash.
The company stated that no regulatory approvals are required for the incorporation of the wholly owned subsidiary. Relevant regulatory approvals for carrying out business operations in the subsidiary will be obtained as necessary, from time to time.
The wholly owned subsidiary once incorporated will be a related party of the company.
The official announcement was made on 08 January 2025 after the market hours.
Niyogin Fintech caters to India’s underserved MSMEs and is a B2B company that operates on a tech centric platform-based model, wherein it delivers ‘banking as a service’ or BaaS platforms and credit in both rural and urban India through a partnership-led strategy. Niyogin ties up with business correspondents, banks and neobanks/fintechs to offer BaaS platforms, while it provides credit and other financial services through its financial professional network (or chartered accountants).
The company had reported consolidated net loss of Rs 4.19 crore in Q2 FY25 as against net loss of Rs 6.76 crore posted in Q2 FY24. However, revenue from operations jumped 53.8% YoY to Rs 72.89 crore in the quarter ended 30 September 2024.
As of 9th January 2025, the company’s market capitalization stood at Rs 670.01 crore on the BSE.