Indian fintech startup Novio has raised ₹100 crore [1] in a Series A funding round to expand its financial services.
This investment highlights a growing trend in the Indian market to provide credit access to underserved populations through secured lending instruments. By leveraging fixed deposits as collateral, the company aims to lower the barrier to entry for credit cards while reducing risk for the lender.
The funding round was led by Cornerstone Ventures [2]. The capital injection of ₹100 crore, which is approximately $10.5 million [1], is earmarked specifically to fund the company's fixed-deposit (FD) backed credit card business and support general growth [2].
There is some variation in reporting regarding the company's identity. While CNBC TV18 identifies the entity as Novio [1], other reports refer to the startup as Credilio [2]. Both sources agree on the funding amount and the strategic focus on FD-backed credit products.
Secured credit cards allow users to build a credit history by pledging a specific amount of money in a deposit. This model provides a safety net for the fintech provider—ensuring the loan is covered by the deposit—while allowing the consumer to access a line of credit they might not otherwise qualify for through traditional unsecured means.
The company intends to use the new capital to scale its operations across India [2]. This move comes as the Indian fintech sector continues to evolve, shifting toward more sustainable, asset-backed lending models to manage delinquency rates.
“Novio has raised ₹100 crore in a Series A funding round”
The shift toward FD-backed credit cards indicates a strategic pivot toward 'secured' fintech growth in India. By requiring collateral, Novio can aggressively expand its user base to those with thin or no credit files without taking on the high default risks associated with unsecured lending, potentially stabilizing its balance sheet during a period of volatile interest rates.
