India’s fintech ecosystem has witnessed yet another setback as Bengaluru-based lending startup Niro has officially shut down its operations. Once hailed as one of the most promising B2B2C lending platforms, Niro’s closure highlights the challenges faced by digital lenders in an increasingly regulated and competitive financial market. Founded in 2021 by Aditya Kumar and Sankalp Mathur, the company aimed to simplify access to credit for millions of Indians by embedding loan services into popular consumer platforms.
A Bold Vision Backed by Big Investors
Niro started its journey with an ambitious mission — to make borrowing easier and more accessible for users through partnerships with leading digital platforms. Instead of directly lending to consumers, Niro enabled apps and websites to offer instant personal loans within their own ecosystems. The startup offered credit between ₹50,000 and ₹7,00,000, with repayment periods ranging from six months to six years. Interest rates were set between 12% and 28%, depending on creditworthiness.
In less than two years, Niro achieved significant milestones. Its loan book grew to around ₹100 crore, while its embedded finance network reached an estimated 170 million users. The company’s growth attracted notable investors, including Elevar Equity, GMO Venture Partners, and Rebright Partners, helping Niro raise close to $20 million across funding rounds. At its peak, the company appeared well on track to become a major name in India’s growing fintech lending sector.
A Rapid Rise Met with Harsh Realities
However, the dream run didn’t last long. Despite its promising start, Niro faced growing challenges that gradually weakened its financial position. The tightening of digital lending regulations by the Reserve Bank of India brought added scrutiny and operational hurdles for fintech lenders. Adapting to these evolving rules required both agility and large amounts of capital — something many young startups struggled with.
Alongside regulatory pressure, rising defaults and poor credit recovery rates worsened the situation. As borrowers failed to repay their loans, Niro’s losses began to mount. The company’s financial statements revealed that its revenue dropped by nearly 60% in FY24 to ₹7.86 crore from ₹19.09 crore in the previous year. At the same time, net losses widened to ₹48.7 crore from ₹36.9 crore. This combination of falling income and increasing losses made it difficult for the company to sustain operations.
Founder’s Message and the End of the Journey
In October 2025, co-founder Aditya Kumar publicly confirmed that Niro would cease operations. In his farewell note, he expressed pride in what the company achieved and gratitude toward its investors, employees, and partners. He acknowledged that the road had been challenging but also said he would “do it all again,” reflecting his resilience and belief in India’s fintech potential. Kumar’s message resonated across the startup community, where failure is often seen as a stepping stone to future success.
Lessons for India’s Fintech Ecosystem
Niro’s shutdown underscores the volatility of India’s lending landscape. Despite growing digital adoption, the lending business remains high-risk, requiring both financial strength and disciplined execution. The company’s fall serves as a reminder that scaling fast is not enough — sustainable growth, strong underwriting, and compliance readiness are equally critical.
For other fintech startups, Niro’s story offers valuable lessons on resilience, risk management, and adaptability. While the startup’s journey has ended, its vision of making credit accessible through technology continues to inspire innovators across India’s ever-evolving fintech sector.