Credilio Bags ₹100 Cr For FD-Backed Credit Card Business novio

Fintech startup Credilio has raised ₹100 Cr (about $10.5 Mn) in its Series A funding round led by existing backer Cornerstone Ventures, with participation from Shepherd Hill, Roots Ventures and ESV-Arthya AIF, among others.

Credilio raised the funding, which will be used to scale its UPI-first fixed deposit credit card app novio, at a pre-money valuation of ₹300 Cr (about $31.7 Mn), founder and CEO Aditya Gupta told Inc42.

Credilio launched novio as a separate fintech platform in 2024 with a focus on issuing secured credit cards for underserved borrowers. It partnered with DCB Bank and SBM to launch FD-backed credit cards which can be linked to UPI. The cards offer rewards and cashbacks in partnership with consumer brands like Swiggy, BookMyShow, Flipkart, and Myntra, among others.

novio leverages Credilio’s main business as a credit marketplace that allows direct selling agents (DSAs) and financial advisors to digitally sell credit products from over 35 banks and NBFCs. It also helps consumer businesses like ecommerce platforms and D2C brands upsell loans and credit cards to consumers.

This business acts as a customer acquisition arm for novio, which targets applicants rejected for these unsecured credit products, mainly due to lack of credit history and formal employment. The fintech startup plans to use the fresh funds to scale this funnel and also build new customer acquisition channels. It will also invest in brand building as it tries to tap larger customer cohorts and build a consumer-facing brand.

The Road Ahead For novio

novio is looking to tap Tier II to V cities, where credit card penetration remains limited as banks are unwilling to underwrite lower tier borrowers, Gupta said.

It will target “credit invisible” consumers, which includes early jobbers and junior employees, shopkeepers, gig workers, students and freelancers, who are prominent digital payment users but aren’t credit worthy for traditional financing.

As per Gupta, novio is aiming to onboard 5 Lakh users by next year. The platform’s consumer base currently stands at 1 Lakh and has only faced a 2% attrition rate in its portfolio, he claimed.

The CEO said that 85% of novio’s users are active on a monthly basis, making an average of 18 transactions per month. The average size of FDs opened through the app stood at ₹9,000, while the average ticket size of transactions stood at ₹500. The cards charge an interest of 3-3.5% per month on the disbursed amount. Only those users that open FDs worth more than ₹10,000 get access to a physical card.

The startup also holds a TPAP licence, which allows it to facilitate UPI payments that can be made directly through the secured credit cards.

novio is now planning to launch an unsecured credit card in partnership with YES Bank to upsell to users that have demonstrated repayment discipline with the secured products. In the future, the startup may also consider hybrid products, including secured cards whose credit lines can run above the underlying FD amount.

novio is in talks with multiple public and private sector banks to launch other secured and unsecured co-branded credit cards. It is also launching EMI options on its credit cards next month. In the future, it may also consider monetising its AI-powered credit advisory business, which is currently free for existing customers.

novio competes in the FD-backed credit card space with most major banks and NBFCs, which have explored the credit instrument in recent years due to its low underwriting risk and credit limits, allowing lenders to offer high-interest credit card products to previously underserved customers. Many of them have partnered with fintech platforms like Tata Neu, ZET, Kredit.pe and Super Money, to launch these credit cards.

Banking on FDs To Battle Slowdown

Credilio was founded in 2020 by ex-HSBC bankers Gupta, Sandeep Ghule and Anand Kapadia, who earlier founded Transerv – a digital payments solution provider that was acquired by Indiabulls. Former PwC partner Manish Sinha joined the startup as a cofounder last year.

In FY25, the startup reported a revenue of ₹82 Cr and a loss of around ₹18 Cr. As per unaudited financials for FY26, its revenue rose around 21% to ₹100 Cr while its loss remained flat. Gupta attributed the growth slowdown to sluggish momentum in the broader B2B credit card distribution market.

However, Credilio expects its top line to grow to ₹150 Cr in FY27 as it scales the novio platform, where it earns revenue on every credit card transaction and revolving income from defaults and fees. Customer acquisition cost remains the startup’s main expense.

Credilio has raised a total funding of $14.5 Mn to date, including the latest funding round, from the likes of Exfinity Venture Partners and Param Capital’s founder Mukul Agarwal.

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