This is its second funding round, valuing it at $315 million, a 7x jump.
Fi had raised $13 million from Ribbit Capital and Sequoia Capital, in a seed round last year.
The latest funding comes after an intermediate capital infusion of about $12 million from existing investors, taking the total to $62 million. In total, Fi has now raised $75 million since inception.
Sumit Gwalani, cofounder of Fi, said the company plans to use capital to bring more customised products to users and double down on hiring for its tech team.
Fi essentially focuses on working professionals aged between 22 and 35, offering them free savings accounts and assistance to improve their savings.
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Currently, the bank accounts are powered by Federal Bank. Gwalani said the company is in talks to onboard more banks.
“We launched the waitlist for our products around the middle of this year and then have been giving access to about one out of three or four applications. In total, there were about a million applications in the waitlist. The monthly transactions from these users have been way out of our expectations,” Gwalani said.
The platform is seeing about three-four million monthly transactions now, he said.
Fi aims to redesign some of the traditional savings products like fixed deposits or recurring deposits with its customised solution for working millennials. It also offers a debit card to users.
“We will bring a suite of investment products, make it customised and fun,” Gwalani said.
This would include mutual funds, stock investments and other products.
“We found that eight out of 10 millennials don’t understand finances and we are trying to demystify it for them through our technology-led thinking,” he said.
Fi has a team of about 130-140 people, of which 70% is in the tech domain.
“Fi is focused on serving the pressing financial needs of 60 million digitally savvy millennials in India. This is a large, attractive, and growing market especially in the backdrop of $180 ARPU (average revenue per user) for top retail banks in the country,” said Kabir Narang, founding general partner, B Capital.
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