New-age digital banking services provider Yelo has raised its first round of institutional funding from Matrix Partners India with participation from Omidyar Network, Flourish Ventures, and Better Capital, in the latest instance showing strong investor interest in what is being called neo-banking.
The company did not disclose the amount it has raised.
Yelo joins the ranks of NiYo and Open, both of which have raised funds from major investors recently in the red-hot sector. Open received $30 million in a financing round led by Tiger Global, while NiYO raised $35 million from Tencent Holdings and Horizons Ventures.
As a neo-banking startup, Yelo offers savings, remittance and micro-credit solutions to consumers with monthly salary of less than Rs 30,000, mainly with the aim to drive financial inclusion among those not directly catered to by banks.
Read the full article from the Economic Times here.