India’s neobank Fi, founded by former Google Pay executives, is discontinuing its banking services after over four years of operation. The fintech, in partnership with Federal Bank, will now direct customers to access their savings accounts through the bank’s mobile app as it phases out the Fi interface.
Launched in 2019, Fi offered digital savings accounts and money management tools through its app, catering to a younger user base. With more than 3.5 million customers and over a billion transactions completed, the Bengaluru-based startup had attracted investments from Ribbit Capital, B Capital, Alpha Wave Global, and Sequoia Capital India, now known as Peak XV Partners.
This move comes as a surprise to customers who received emails notifying them of the impending discontinuation of banking services on the Fi app. However, the company reassured users that their savings accounts with Federal Bank remain active and accessible through the bank’s mobile banking app, FedMobile.
Federal Bank also informed customers about the partnership termination with Fi, attributing it to a ‘business re-alignment’ and instructing users to transition to the bank’s digital channels for account access.
The neobanking space in India has seen competition from players like Jupiter, Open, and Slice. Having raised approximately $169 million through multiple funding rounds, Fi’s decision to wind down its banking services marks a significant transition in the Indian fintech landscape.
Source: TechCrunch