The round also saw the participation from Hillhouse Capital and angel investors, including David Velez (Founder of Nubank), and Kunal Shah (Founder and CEO of Cred).
The round has reportedly valued epiFi at around $50 million.
epiFi will use the capital to invest in and build its core technology platform, drive sales and marketing initiatives, and expand its technology team, it said in a statement.
“Millennials are a digital-first generation who are reshaping the world’s economy, pushing companies to reexamine the way they do business. When it comes to banking, they are looking for a personalised, flexible and transparent experience with minimal friction. Through epiFi, our mission is to provide digital natives a new-age platform that uses customer insights and deep tech to simplify their banking journey and help them take a big step towards achieving financial freedom,” Sujith Narayanan, Co-founder of epiFi, said.
epiFi was founded in May last year by Google Pay top executives Sujith Narayanan and Sumit Gwalani to provide digital banking solutions and help its customers demystify their finances, maximize savings, and spend intelligently.
“Consumer banking, especially key products like savings accounts, haven’t seen true innovation in many years. Sujith and Sumit have demonstrated the ability to change the trajectory of financial services in India with their work on Google Pay in the digital payments space. Their vision of reimaging consumer banking has the potential to bring a step function change in experience for digitally-savvy consumers,” said Shailesh Lakhani, Managing Director, Sequoia Capital India LLP.
Neobanking has become a buzzword in the fintech community, and is changing the way India does banking. A neobank is a digital bank without any physical branches, and completely relies upon the internet and other forms of electronic channels for running operations.
The sector has attracted huge investor interest in the past 1-2 years.
In September last year, personalised neobanking service Yelo raised seed round funding from Matrix Partners India, Omidyar Network India, Flourish and current investor, Better Capital. New York-based investment firm Tiger Global Management led a $30-million Series B funding round for Bengaluru-based neo-banking startup Open in June last year.