Fi Money shuts banking services for 35 million+ users
Fi Money, a popular neobank started by former Google Pay executives, is shutting down its banking services with Federal Bank.
More than 3.5 million users are affected, as the company struggled to grow its main lending business despite raising $168 million.
Cash shortages and layoffs followed.
Users can still access their money
You won't be able to use Fi Money's app for banking anymore, but your savings account with Federal Bank is still safe and can be managed through the FedMobile app.
So, your money isn't stuck. You just need a new way to access it.
Cash crunch led to layoffs
Fi Money ran into financial trouble as it couldn't raise new funds and had to cut staff in the past year, reducing headcount to about half the level prior to the layoffs.
This made it tough for them to keep up on tech projects like AI features.
Neobanks are finding it hard to survive
Fi Money's shutdown of its banking services highlights how tough things are for Indian neobanks that don't have their own licenses and rely on partnerships.
Scaling back products like mutual funds and US stocks on the app shows how hard it is for these startups to make money: millions of customers feel the impact.