Introduction:
The financial services startup Novopay was established in 2014 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:
Novopay is a financial technology (fintech) company that focuses on providing digital payment and banking solutions, particularly for underserved and unbanked populations. The company primarily operates in India and offers a range of services designed to enable secure, cashless transactions in rural and semi-urban areas.
Key Features of Novopay:
- Digital Payments: Novopay facilitates digital transactions, enabling users to send and receive money, pay bills, and perform other financial activities without the need for traditional bank infrastructure.
- Agent Network: Novopay operates through an extensive network of agents, which are small retail outlets that act as points of service for customers, allowing them to carry out financial transactions using Novopay’s platform.
- Financial Inclusion: The company’s primary goal is to drive financial inclusion by offering easy access to banking services in remote areas. Through its mobile-based platform, Novopay helps bring banking services to people who may not have access to physical banks.
- Services:
- Bill Payments: Users can pay utility bills like electricity, water, and gas.
- Money Transfers: Remittances and money transfers between individuals.
- Microloans and Savings: In some cases, Novopay also helps facilitate small loans and savings products, often in partnership with local banks.
- Technology: Novopay uses mobile and cloud-based technology to simplify financial transactions and make banking services more accessible. It integrates with other financial institutions and platforms to provide a seamless user experience.
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 Founded 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.
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:
Novopay Solutions Private Limited experienced significant financial changes during the fiscal year ending March 31, 2021. The operating revenues for the company ranged from INR 100 billion to 500 billion. However, the company faced a substantial decline in its financial performance:
- EBITDA Decline: The company experienced an extremely steep decline in EBITDA, with a reported -3,791.78% decrease over the previous year. This suggests major operational challenges or significant changes in the business environment.
- Net Value Decline: The book net value of Novopay also dropped by -39.62% in the same period, indicating a reduction in the company’s overall equity or assets.
- Recent AGM: The most recent Annual General Meeting (AGM) for Novopay Solutions Private Limited was held 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. They 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. Novopay received a $10 million investment from Khosla Labs, which plays a crucial role in supporting the company’s growth and innovation in the fintech space. This investment is expected to help scale their operations and expand their reach, especially in underserved regions.
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.
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. They are Enhancing and making this tool more user friendly future ready to increases the Productivity.
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 founded it.
Who is the CEO of Novopay Corporation?
At the moment, Srikanth Nadhamuni serves as CEO of Novopay.
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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