India neobank Fi winds down banking services on its platform

India’s neobank Fi is discontinuing banking services connected its level much than 4 years aft launching them successful concern with Federal Bank, directing customers to entree their savings accounts done the bank’s mobile app arsenic it winds down the Fi interface.

Founded successful 2019 by former Google Pay India executives Sujith Narayanan and Sumit Gwalani, Fi launched its app-based banking work successful concern with Federal Bank successful 2021 to connection integer savings accounts and wealth absorption tools aimed astatine younger users. The Bengaluru-based startup says it has served much than 3.5 cardinal customers and completed implicit a cardinal transactions done its platform. It counts investors including Ribbit Capital, B Capital, Alpha Wave Global, and Sequoia Capital India, which spun disconnected arsenic Peak XV Partners successful 2023.

This week, though, customers who opened accounts done the Fi app received an email stating that banking services connected the level volition soon beryllium discontinued. The fintech said customers’ savings accounts with Federal Bank volition stay progressive and indispensable present beryllium accessed done the bank’s mobile banking app, FedMobile.

“The banking services connected the Fi app volition soon beryllium discontinued; however, your Savings Account with Federal Bank remains progressive and afloat operational. Your funds stay wholly harmless and accessible astatine each times,” the institution said successful the email, reviewed by TechCrunch.

In a abstracted email, Federal Bank told customers that its concern with Fi was ending arsenic portion of a “business re-alignment,” advising them to entree their accounts done its ain integer channels.

“Our concern with Fi is ending. Your relationship remains the aforesaid and lone the transmission done which it is accessed is changing,” the slope said successful the email.

Fi was competing with the likes of Jupiter, Open, and Slice. The startup has raised astir $169 cardinal crossed 5 backing rounds, per Tracxn.

While the startup is vacating its superior business, the institution has indicated that this is not a implicit shuttering. Last month, Fi co-founder Narayanan said successful a LinkedIn station that the institution was realigning its strategy to absorption connected gathering “deep technology” and artificial quality systems for startups and ample enterprises, adding that immoderate products would sunset arsenic portion of the transition.

“We asked wherever we bash our strongest work, and wherever we tin physique thing that genuinely lasts. The answers kept pointing successful 1 absorption – heavy technology, AI, and gathering analyzable systems for startups & ample enterprises alike,” Narayanan wrote.

TechCrunch independently confirmed that caller users tin nary longer unfastened savings accounts done the Fi app, which present displays a connection saying the enactment is nary longer available. However, Fi did not respond to requests for remark connected its strategical displacement and plans for the future. Federal Bank besides did not respond to requests for comment.