Fintech startup Niro has ceased operations after four and a half years, co-founder Aditya Kumar announced in a LinkedIn post.

Kumar revealed that despite raising $20 million and disbursing $200 million in loans through 30 partnerships, the company had to shut down due to regulatory hurdles, credit risks, and funding constraints.

Founded in 2021 by Aditya Kumar and Sankalp Mathur, Niro operated as a B2B2C lending platform, helping consumer internet companies embed credit offerings for their users. The Bengaluru-based startup collaborated with leading financial institutions and major internet platforms to provide personal loans ranging from Rs 50,000 to Rs 7 lakh for 6 to 72 months, with interest rates between 12% and 28%.

Within just two years of its launch, Niro built $100 million in assets under management (AUM) and handled over 170 million user flows at its peak. Its investors included Elevar Equity, GMO Venture Partners, Rebright Partners, Mitsui Sumitomo Insurance VC, and Innoven Capital.

In his statement, Kumar admitted that the shutdown came as a surprise, stating, “We had achieved the impossible — built incredible teams, raised quality capital, and secured partnerships with top internet platforms and lenders. Despite searching globally for investors and locally for acquirers, I couldn’t save this one.”

He described the company’s closure as the result of a “perfect storm,” involving regulatory tightening in personal lending, deteriorating credit conditions, and restricted capital availability, which forced Niro to pivot its business model multiple times.

Kumar also noted that while financial institutions remain eager for high-quality consumer data to improve underwriting, regulatory pressure and reduced innovation appetite have slowed industry growth.

Reflecting on Niro’s journey, he said he would “do it all over again,” calling the venture “the right idea, at the right time, with the right backing.” He expressed gratitude to investors and team members, including Jyotsna, Sandeep Farias, Shikha, and Elevar Equity, for their unwavering support.

Kumar concluded by saying he plans to take time off to unwind and will attend the Global Fintech Fest as an attendee, while remaining optimistic about the future of India’s fintech ecosystem.

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