Novio raises $10.5m to expand credit access in India

By Parth Prabhudesai

Indian FinTech startup Novio has raised ₹100 crore (approximately $10.5 million) in a Series A funding round led by Cornerstone Ventures, with participation from Shepherd’s Hill Private Equity, ESV-Arthya AIF, and Roots Ventures. The round also included venture debt financing from Innoven Capital and Alteria Capital.

The company said the fresh capital will be used to expand its distribution network across tier II to tier V cities, strengthen partnerships with banks, and enhance its product offerings, including UPI integration and AI-led credit advisory tools.

Founded in 2024 by Aditya Gupta, Sandeep Ghule, Anand Kapadia, and Manish Sinha, Novio focuses on providing credit access to individuals without a formal credit history. Its core product is a fixed deposit-backed credit card, allowing users to open a deposit via its app and receive a RuPay credit card within hours—without the need for income proof or traditional credit checks.

The card can be linked to UPI for everyday transactions, while the underlying deposit continues to earn interest, offering a dual benefit of liquidity and savings. Novio currently partners with banks such as SBM Bank and DCB Bank to issue cards and provide additional features including rewards, travel benefits, and real-time redemption.

“We are building a simple and accessible pathway to credit for millions of underserved users,” a company spokesperson said. “Our focus is on combining secured credit products with digital convenience to help users enter the formal financial system.”

The startup claims to have crossed 100,000 active cardholders within a year of launch, indicating strong early traction. It now aims to scale aggressively, with a target of issuing 5 million cards over the next three years.

The funding reflects growing investor interest in FinTech models that address financial inclusion, particularly in emerging markets where access to formal credit remains limited.