NeoBanking Startup ‘Niyo’ To Launch A Travel Tech Platform
Niyo is reportedly launching a platform for travel technology in the next few weeks. This will provide services of visa, travel booking, travel insurance & more.
The Indian neo-banking startup Niyo, which has received backing from investors including Accel and Lightrock, is planning to launch a travel tech platform in the coming weeks.
The move is an expansion of Niyo’s existing offerings, building upon the success of its global forex card.
The company’s decision comes at a time when fintech startups in India are adjusting to a changing regulatory environment, particularly concerning digital lending.
Niyo’s current products include savings bank accounts, an investment platform called Niyo Money, and various other banking-related services.
The travel tech platform will cover a wide range of services related to travel, including visa bookings, travel experiences, concierge services, tour packages, and travel insurance.
Niyo aims to target passport holders, viewing them as potential customers who are likely to travel abroad and have the necessary funds.
However, the company faces competition from established players in the travel tech space, such as MakeMyTrip, EaseMyTrip, and Thomas Cook.
Despite the competitive landscape, Niyo remains ambitious and expects its margins to double with the launch of the travel tech platform.
Currently, the company’s margins range from 3% to 4%, but they could increase to around 10% through commissions earned from transactions on the platform.
The company anticipates higher earnings from users traveling to destinations like Europe, where spending tends to be higher.
Niyo has already made its loans and rewards mechanisms more travel-centric in preparation for the launch of the travel tech platform.
While neobanking will continue to be the company’s core product for now, a full pivot to a travel tech platform in the future is not out of the question.
Having raised over $170 million from investors, Niyo is well-funded and is not expected to seek fresh funds in the near term.
The company holds over $80 million in the bank. The launch of the travel tech platform represents Niyo’s strategic move to expand its product offerings and tap into the potential of the travel market.