Introduction:
The financial services startup Novopay was established in 2013 by Srikanth Nadamuni, Gautam Bandyopadhyay, and Sridhar Rao with the goal of using mobile technology to enable the banking sector to connect with the long tail of customers and retailers. They enable customers to utilize Kirana stores as money-deposit and fund-transfer centers by providing fingerprint scanners to the establishments and using the Aadhaar-based unique identification number database. To provide its services through an app, the business has partnered with RBL, Axis Bank, IDFC, and Bank of India. Customers who are adept with mobile devices can recharge their phones, pay bills, and recharge DTH and mobile devices with Novopay’s mobile app.
Company Highlights:
| Company Name | Novopay |
| Headquarter | Bengaluru, Karnataka, India |
| Industry | Finance |
| Founded | 2014 |
| Founder | Srikanth Nadhamuni, and Gautam Bandyopadhyay |
| Website | https://www.novopay.in/ |
Novopay – About:
A private, unlisted firm called Novopay Solutions Private Limited was established on February 20, 2014. Bangalore East Taluk, Karnataka, is where it is situated, and it is categorized as a private limited business. It has a paid-up capital of 12.26 million rupees and an authorized share capital of 23.00 lakh rupees.
A non-government organization, Novopay Solutions Private Limited, was established on February 20, 2014. It is a private, unlisted corporation that falls under the definition of “company limited by shares.” The company’s authorized capital is Rs. 13.0 lakhs, and its paid-up capital, which is Rs. 11.34 lakhs, is at 87.21208 percent of that amount. The final annual general meeting (AGM) of Novopay Solutions Private Limited took place on September 30, 2017. According to the Ministry of Corporate Affairs, the company’s financial information was last updated on March 31, 2017. (MCA).
Industry:
According to Srikanth Nadhamuni, the underlying technology can enable scaling to a billion people with little additional expense. The Bengaluru-based payments business Novopay claims that by concentrating on unbanked and rural users, it is gradually upending the mobile wallet market.
For local banking, many of these consumers use the Novopay Solutions board at their neighborhood shop. Their Novopay wallet, which is bank-backed and reflects funds sent to it from relatives who work in Delhi or Mumbai, is updated when these transfers take place. The store clerk helps them complete these transactions on their smartphone. The neighborhood store uses biometric scanners and smartphones to verify the user receiving the money against the Aadhaar-based database of unique identity numbers. The money kept in the wallet by Novopay is connected to the bank account, making it a bank-backed account wallet.
Founder and Team:
Since its founding nine years ago, Novopay Solutions Private Limited has focused mostly on the commercial services sector. Srikanth Nadhamuni and Gautam Bandyopadhyay created it.
These individuals currently serve as board members and directors: Srikanth Nadhamuni, Sridhar Rao, Gautam Bandyopadhyay, Avtar Singh Monga, Shankar Bali, and Krishna Ramesh Hegde. In 2014, it was established.
Startup Story:
It was started as a platform offering payments and banking services to unbanked and rural customers in 2014 by Nadhamuni. The Bengaluru-based startup launched “Trustt” to serve the demands of financial institutions as the payments industry transformed over time with the introduction of UPI.
The retail payments business of Novopay Solutions is focused on B2C channels, whereas the banking SAAS business is focused on products. The demerger was a natural course of action given the two distinct sets of offerings, which were aimed at two distinct markets and consumers.
Mission and Vision:
The goal of Novopay is to assist banks, NBFCs, and FinTechs in quickly delivering financial products to their clients, with a strong emphasis on client convenience, business efficiency, and security. The product portfolio of the company includes, among other things, digital loans, digital distribution, digital identification, and payments, all of which can be tailored to each client’s particular requirements.
Name, Tagline, and Logo:
Novopay Banking has been renamed as Trustt.
Business Model:
A mobile payments and banking system called Novopay, which was introduced by the Khosla Labs incubator in February 2014, offers banking services at Kirana stores, such as creating bank accounts, making deposits, withdrawing money, sending money overseas, paying bills, and topping up mobile phones. In 12 Indian states, it is currently accepted in over 1800 retail locations. Modern NoC (network operation center) monitors and controls stores, devices, and transactions in real-time on a GIS map. The Reserve Bank of India has received Novopay’s application for a license as a payment bank.
Revenue Model:
Operating revenues for Novopay Solutions Private Limited range from INR 100 billion to 500 billion for the fiscal year that ends on March 31, 2021. Over the previous year, it experienced a -3,791.78 percent decline in EBITDA. Its book net value has fallen by -39.62 percent in the same period. According to it records, the most recent reported AGM (Annual General Meeting) of Novopay Solutions Private Limited took place on September 29, 2022.
Products and Services:
With the help of the GPT-based Conversational Suite and cloud-based SaaS banking platform from Novopay, clients can give their consumers a seamless banking experience across a variety of channels. We take pride in having run 130,000 retail locations, servicing more than 3 million walk-in customers each month, managing a loan book worth more than 10,000 Cr ($1.3 billion USD), and handling payment transactions of 2,000 Cr ($266 million USD). Novopay clients can access and manage their financial activities with ease thanks to the company’s solutions, which include the most user-friendly UI/UX design.
Funding and Investors:
It is a pioneer in supporting financial transactions at retail, empowering companies, merchants, and customers with cutting-edge technological solutions. They simplify, secure, and make banking and payments easy. The $10 million in investment is total out of Khosla Labs.
Employees:
It has 251 – 500 employees.
Challenges Faced:
In the first pay period of 2013, 286 schools were affected by 1647 overpaid teachers, 206 underpaid teachers, and 39 unpaid instructors. As part of Talent2’s efforts to improve Novopay, a brand-new bug was added that caused these issues.
Acquisitions:
Here is no acquisition done.
Growth:
With just over five million transactions delivered by Novopay last year, users sent an average of Rs 3,000 to their family members. Access to the service was provided through around 44,000 outlets, which are the neighborhood shops that run the user-assisted wallet. It plans to reach around 300,000 stores across India by the middle of 2017—a five-fold increase in reach.
Domestic money transfers and AePS (Adhaar-enabled payment system) withdrawal services are available through Kirana shops through Novopay’s retail business, which functions as BC (business correspondents or banking correspondents). It asserts that it has established a network of 100,000 Kirana stores in 23 states.
Partners:
RBL, Axis Bank, IDFC, and Bank of India are partners with Novopay in order to offer their services to users through the bank-backed wallet. The business has a consumer wallet and is working with businesses to grow its user base rather than spending money to attract new customers. The company’s core software is used by IDFC Bank, a strategic investor in Novopay, to manage its banking operations. Fintechs like Paynearby, Spice Money, Fino Bank, and other payment banks are now in charge of the financial inclusion sector, nevertheless.
Competitors:
SB Payment Service, Sila, Rebellion Pay, and CurrencyTransfer.com are some of Novopay’s rivals and related businesses.
Awards and Achievements:
At the India FinTech Forum’s IFTA 2020 Awards, it was recognized as the top technology business for fintech solutions.
Future Plan:
The Novopay digital banking platform, which is an AI-driven SaaS-based Core Banking Platform, helps banks, NBFCs, MFIs, and Fintechs secure and process payments to enhance their day-to-day operations in payments, lending, and KYC. With Novopay’s banking platform, hassle-free services for digital lending, distribution, and payment solutions are guaranteed. Additionally, this banking software makes sure that customer onboarding is fully paperless and digital, i.e., without any paper at all.
Conclusion:
Novopay Solutions was started as a platform offering payments and banking services to unbanked and rural customers in 2014 by Nadhamuni. The Bengaluru-based startup launched “Trustt” to serve the demands of financial institutions as the payments industry transformed over time with the introduction of UPI. Novopay Solutions Pvt. Ltd, which is supported by Khosla Ventures, is in the process of demerging its retail business. Having just changed its name to “Trustt,” the company will now only house its banking software division, according to chairman Srikanth Nadhamuni.
FAQs:
What does Novopay do?
Founded on February 20, 2014, Novopay Solutions Private Limited is an unlisted private corporation.
When was Novopay founded?
It was established in 2014.
Who is the founder of Novopay Corporation?
Gautam Bandyopadhyay and Srikanth Nadhamuni created it.
Who is the CEO of Novopay Corporation?
At the moment, Srikanth Nadhamuni serves as Chairman and Co-Founder of Novopay as well as CEO of Khosla Labs.
Who are the main competitors of Novopay?
The rivals and comparable businesses to Novopay are SB Payment Service, Sila, Rebellion Pay, and CurrencyTransfer.com.
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