RapiPay Raises $15 Mn To Launch Digital Banking Super App

Fintech startup RapiPay has raised $15 Mn in funding to launch NYE, a new-age digital banking super app. The current funding round is led by Varun Jaipuria of RJ Corp, DLF Family Office, Rahul Gautam of Sheela Foam and Rohan Kumar of DS Group.

The funding will be used to build digital banking and financial ecosystem and scale up existing payment services, the startup said.

The investors feel that the digital banking super app has the potential to get the entire retail network of 6 Mn merchants on board using the app for salary and current accounts, payment solutions, retail, and business loans, buy now pay later (BNPL) investments, insurance, or other convenience services, said the fintech startup.

RapiPay claims to be the only digital banking player in the country to have a ready phygital infrastructure of half a million hybrid direct business outlets (DBOs). 

It has already partnered with a leading private sector bank, whose name the startup does not want to reveal at this stage. Besides, it also has partnered with a small finance bank, the startup told Inc42, adding that it plans to raise more funds in the coming months.

Phygital is the concept of using technology to bridge the digital with the physical world to provide a unique interactive experience for users. The pandemic has seen a big shift in consumer preferences for phygital banking.

The Delhi-based startup has a target to open 2 Mn primary current and salary bank accounts, install 1 Mn POS machines, a GTV of $30 Bn, 150 Mn unique customers, 3.5 Mn daily transactions and have a phygital infra of 2 Mn hybrid DBOs by 2025.

The hybrid DBOs will provide 24X7 banking services to customers at the doorstep across segments and geographies in the country, it said.

Expected to be launched in June 2022, NYE super app will help RapiPay leverage technology to create ease, and convenience to provide banking and financial services in a seamless manner, said Nipun Jain, CEO, RapiPay.

“NYE is the first of its kind banking super app to manage multiple bank accounts, transactions and all kinds of financial requirements through a single login and one view of all transactions summary,” Jain said.

Founded in 2019 by Yogendra Kashyap, RapiPay provides agent-based payment solutions for businesses. It also offers services such as mobile recharge, DTH recharge, money transfer, bill payments, cash withdrawal, AEPS, among other facilities.

The fintech startup is doing 1 Mn daily transactions and has served more than 100 Mn customers, witnessing robust growth of 25% month-on-month in basic banking services including cash withdrawal and deposit, AEPS, Micro ATMs, POS, utility payments, loans, and insurance, it said.

Announcing the latest funding, RapiPay’s cofounder and MD Yogendra Kashyap said, “We became the market leader in assisted payments in just 3 years. Entering the B2C market with NYE is a natural business progression… The fresh capital will be used for building a robust digital financial ecosystem in the country for both consumers and businesses. Our philosophy has been to first research, understand the requirements and create technology with viable business models.”