Credilio, a fintech startup, has secured ₹100 crore in a Series A funding round led by Cornerstone Ventures, with participation from Shepherd Hill, Roots Ventures, and ESV-Arthya AIF. This investment will support the expansion of its UPI-first fixed deposit-backed credit card app, novio, which targets underserved borrowers in India. The funding values the company at a pre-money valuation of ₹300 crore.
### Expanding Financial Access with novio
Launched in 2024, novio is designed to issue secured credit cards for individuals often overlooked by traditional banks, particularly in Tier II to V cities. These areas experience low credit card penetration due to banks’ reluctance to underwrite borrowers with limited credit histories. By partnering with DCB Bank and SBM, novio offers FD-backed credit cards linked to UPI, providing rewards and cashbacks through brands like Swiggy and Flipkart.
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novio leverages Credilio’s broader credit marketplace, which collaborates with over 35 banks and NBFCs, enabling direct selling agents and financial advisors to offer credit products digitally. This approach helps novio acquire customers who are typically rejected for unsecured credit products, aiming to onboard 5 lakh users by next year.
### Navigating the Competitive Landscape
The FD-backed credit card market is gaining traction as major banks and NBFCs explore low-risk credit instruments. Competitors like Tata Neu and Kredit.pe are also active in this space, partnering with fintech platforms to reach underserved customers. Credilio’s strategy to tap into this market involves launching an unsecured credit card with YES Bank for users who demonstrate repayment discipline.
Credilio’s focus on Tier II to V cities highlights a significant opportunity as these regions are home to early jobbers, gig workers, and freelancers who frequently use digital payments but lack access to traditional credit. The company’s ability to facilitate UPI payments through its TPAP licence further strengthens its offering.
### Implications for India’s Startup Ecosystem
Credilio’s recent funding round underscores the growing interest in fintech solutions that address financial inclusion in India. With a 21% revenue increase to ₹100 crore in FY26, despite a flat loss of ₹18 crore, the company is poised for further growth. The startup’s plans to introduce EMI options and potentially monetize its AI-powered credit advisory service indicate its intent to diversify revenue streams.
For founders and investors, Credilio’s trajectory suggests a promising avenue in fintech innovation, particularly in developing financial products tailored to India’s diverse consumer base. As the company scales its operations, stakeholders should watch how effectively it can balance customer acquisition costs with revenue growth, potentially setting a benchmark for similar ventures in the sector.
