Niyo, a neo banking startup with strong backing from Accel and Lightrock, is gearing up to unveil an innovative travel tech platform in the coming weeks, according to individuals familiar with the matter. This strategic move from Niyo marks a significant expansion for the company, leveraging the triumph of its widely acclaimed global forex card to make its mark in the travel industry.
By venturing into this new sector, Niyo aims to build upon its achievements and deliver exceptional value to travelers worldwide.
In order to enhance its comprehensive range of services, It’s travel tech platform aims to provide a holistic solution for all travel-related needs. Users will have access to a wide array of offerings, including visa booking, curated travel experiences, personalized concierge services, thoughtfully designed tour packages, reliable travel insurance, and more.
This integrated approach ensures that every aspect of the travel experience is catered to, allowing users to enjoy a seamless and hassle-free journey.
Niyo Global Card aims to cater specifically to passport holders, as they are the primary target demographic for the company. It recognizes that individuals with passports are more likely to engage in international travel and possess the financial means to do so.
This strategic approach aligns with Niyo’s vision of providing comprehensive financial services tailored to the needs of globetrotters.
Based on the most recent government statistics, the total count of Indian passport holders, encompassing individuals of all age ranges, stands at approximately 96 million.
However, when considering the specific demographic groups that the company aims to serve, namely millennials and Gen Z, the figures are significantly lower. This presents Niyo with a narrower target audience, requiring the company to concentrate its efforts on addressing the needs of this specific segment of the population.
In addition to the existing competition in the travel tech industry, The company faces a formidable challenge as it strives to carve out its own space. Established players like MakeMyTrip, EaseMyTrip, Thomas Cook, and numerous others have already entrenched themselves in the quest for a larger share of the travel market.
Niyo remains undeterred by market competition as it pursues its ambitious goals. Internally, It projects a doubling of its margins as the travel tech platform gains traction.
Presently, the company’s margins hover around 3-4 percent. However, with the introduction of travel-related services, the company anticipates a substantial increase to approximately 10 percent.
This surge can be attributed to the lucrative commissions that Niyo expects to earn from each transaction on the platform, as disclosed by a knowledgeable source familiar with the company’s plans.
“Financial capability is essential when venturing abroad; without sufficient funds, international travel becomes implausible. It recognizes that users who possess ample resources are more likely to generate revenue.
While a user’s trip to Goa may not yield significant profits for Niyo, destinations like Europe entail higher expenses and subsequently contribute to the company’s earnings,” the source explained. The company remains confident that monetization will not pose a formidable obstacle, as they have set a five-year timeframe for the company to thrive as a leading travel tech platform internally.
In 2015, Niyo emerged as a pioneering establishment, co-founded by Vinay Bagri and Virender Bisht. Vinay Bagri, an experienced professional with a background in esteemed financial institutions like Standard Chartered and Kotak Mahindra, joined forces with Virender Bisht, who had previously contributed his expertise to the renowned travel platform MakeMyTrip.
Together, they embarked on a journey to establish Niyo, shaping it into a dynamic and innovative enterprise.
SHIFTING PERSPECTIVES: EXPLORING NEW DIRECTIONS ON THE HORIZON
In the recent months, Niyo has dedicated significant efforts in refining its technological infrastructure to support the upcoming travel tech platform. The company’s loans and rewards programs have undergone substantial enhancements to cater specifically to the travel industry.
Although neo banking remains the primary focus of Niyo presently, it is evident that the company is open to the possibility of transitioning into a comprehensive travel tech platform in the future. This strategic evolution cannot be disregarded and may hold exciting prospects for Niyo’s expansion and diversification.
Niyo, with its substantial cash reserve of over $80 million, is poised to avoid seeking additional funding from the markets.
The company has already secured an impressive investment sum of more than $170 million from prominent backers including Accel, Lightrock, Prime Venture Partners, and various other notable investors. This substantial financial support has positioned Niyo in a favorable position for growth and expansion in its industry.
Published By Naveenika Chauhan
