Decentro will integrate the payments and lending workflows and enter the debt collection space through this acquisition
The startup will acquire the debt collection dashboard used by Neowise
Neowise will operate as the former’s fully owned subsidiary
Y Combinator-backed fintech startup Decentro has acquired Mumbai-based SaaS fintech platform Neowise Technologies for an undisclosed amount in a cash and share deal.
As a part of the deal, Decentro will integrate the payments and lending workflows and enter the debt collection space and offer it as its services to banks and NBFCs.
Founded by Rohit Ramachandran and Siddarth Padmanabhan in 2020, Neowise offers credit solutions and debt collection services to the financial businesses.
According to an Economic Times report, this is the first acquisition by Decentro since its inception in 2020. Founded by Pratik Daudkhane and Rohit Taneja, the startup will acquire the debt collection dashboard used by Neowise and the latter will operate as the former’s fully owned subsidiary. However, the two teams will continue to perform independently.
Commenting on the loan repayment setbacks, Decentro’s Rohit Taneja said, “We observed a crucial aspect of streamlining loan repayments when we introduced our digital lending API stack. Moreover, the collections process for numerous NBFCs and lenders relied heavily on manual operations.”
According to him, the Decentro team recognised the need to establish a deeper partnership that enhances its current offerings. “Neowise, with its comprehensive loan collections suite, seamlessly aligns with our vision of empowering the lending sector,” he added.
Last year, Decentro had bagged $4.7 Mn in its Series A funding round to hire talent for its business development, product, operations and tech teams. Back then, it also announced that the funding would help it expand its customer base and launch new product categories.
According to Inc42’s State Of Indian Fintech Report Q1 2023, India has over 4.2K active fintech startups, while more than 660 of these are funded. The fintech sector has seen huge investment worth $14.8 Bn between 2021 to 2023 H1 in spite of the funding crunch.
In June this year, Lendingkart bagged $24 Mn in long-term debt funding to drive growth for this financial year.