Fintech startup Novio has raised Rs 100 crore, equivalent to $10.5 million, in its Series A funding round. The investment was led by Cornerstone Ventures, with participation from Shepherd’s Hill Private Equity, ESV-Arthya AIF, and Roots Ventures. The round also included venture debt support from Innoven Capital and Alteria Capital.
This fresh capital is expected to strengthen Novio’s efforts to make credit more accessible, especially for individuals who are often excluded from traditional financial systems. The company aims to use the funding to deepen its presence and build stronger infrastructure for long-term growth.
Focus on Expanding Reach Beyond Metro Cities
A significant portion of the funds will be directed toward expanding Novio’s distribution network across tier II to tier V markets. These regions often face limited access to formal credit due to lack of documentation or credit history.
By targeting these underserved segments, Novio plans to bridge the gap between financial institutions and first-time credit users. The company is also working to enhance its partnerships with banks to support this expansion and ensure smoother onboarding for customers across smaller cities and towns.
Strengthening Product Capabilities and Technology
In addition to geographic expansion, Novio intends to invest in strengthening its product stack. This includes deeper integration with UPI systems, allowing users to make seamless digital payments using their credit cards.
The company is also focusing on incorporating AI-led credit advisory tools. These tools are expected to help users better understand their spending patterns, manage credit responsibly, and improve their overall financial health. By combining technology with simple financial products, Novio aims to create a user-friendly experience for individuals new to credit.
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A Simple Model for First-Time Credit Users
Founded in 2024 by Aditya Gupta, Sandeep Ghule, Anand Kapadia, and Manish Sinha, Novio operates with a clear focus on individuals without a formal credit history. Its core offering is a credit card backed by a fixed deposit, making it accessible to users who may not qualify for traditional unsecured credit cards.
Through the Novio app, users can open a fixed deposit and receive a RuPay credit card within hours. The process does not require income proof or prior credit checks, which removes key barriers typically faced by first-time borrowers.
The fixed deposit serves as collateral, while also earning interest for the user. This dual benefit allows customers to build a credit profile without taking on high risk.
Seamless Payments with UPI Integration
One of Novio’s key features is the ability to link its credit card to UPI. This allows users to make everyday payments directly through UPI platforms while using their credit limit.
This integration aligns with the growing adoption of digital payments in India and makes the product more practical for daily use. It also helps users gradually transition into the formal credit ecosystem through familiar payment methods.
Bank Partnerships Supporting Card Issuance
Novio collaborates with banks such as SBM Bank and DCB Bank to issue its credit cards. These partnerships play a crucial role in ensuring regulatory compliance and smooth card operations.
In addition to basic credit functionality, the cards offer features such as rewards, travel benefits, and real-time redemption options. These features are designed to make the product competitive with traditional credit cards while remaining accessible to a broader user base.
Early Growth Signals and Future Plans
Within a year of its launch, Novio reports that it has crossed 1 lakh active cardholders. This early traction reflects growing demand for alternative credit solutions, particularly among users entering the financial system for the first time.
Looking ahead, the startup has set an ambitious target of issuing 50 lakh cards over the next three years. Achieving this goal will depend on its ability to scale distribution, maintain strong banking partnerships, and continue improving its technology-driven offerings.
With fresh funding in place and a clear focus on financial inclusion, Novio is positioning itself as a key player in expanding credit access across India’s emerging markets.
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