Wednesday, April 29, 2026: Fintech startup Novio has secured ₹100 crore in a Series A funding . The fresh capital comes at a time when India’s credit ecosystem is witnessing rapid evolution, particularly among first-time borrowers in smaller cities.
The company plans to channel the funds into expanding its distribution footprint beyond metro markets, with a clear emphasis on Tier II and emerging urban centres. A portion of the investment will also support product innovation, including the development of AI-driven credit advisory features integrated into its UPI-based stack.
Founded in 2024, Novio operates at the intersection of secured credit and digital payments. Its core offering, a credit card backed by a fixed deposit—aims to lower entry barriers for users who lack formal income proof or credit history. The RuPay-powered card is linked to UPI, allowing seamless transactions while the underlying deposit continues to earn interest of up to 7% annually.
Novio Funding to fuel Tier II expansion and AI-led credit innovation
This hybrid model reflects a broader shift in how fintech firms are attempting to reframe credit usage in India. By tying spending limits to customer-controlled deposits, Novio positions its product as a safer alternative to traditional unsecured credit cards, which are often perceived as risky by first-time users.
Founder and CEO Aditya Gupta highlighted the aspirational nature of credit in India, noting that while demand is widespread, accessibility remains uneven. The company’s approach, he suggests, offers a more controlled pathway into the credit ecosystem, especially for younger consumers wary of debt exposure.
From an investor perspective, the model taps into a significant market gap. With roughly 4 crore credit card holders in India and an estimated 40 crore potential users yet to enter the system, the opportunity for scalable, low-risk credit solutions remains substantial. Cornerstone Ventures’ Partner Vatsal Bavishi pointed to the company’s improving unit economics and consumer-centric design as key factors behind the investment.
Novio reports having crossed one lakh active cardholders, attributing its early traction to a digitally driven distribution strategy and lean operational model. The company has also partnered with banks such as SBM Bank and DCB Bank to enable its offerings.
The outcome of this funding round signals growing investor confidence in alternative credit models that prioritize inclusion and risk management. If executed effectively, Novio’s expansion into underserved markets could contribute to widening formal credit access while reshaping consumer attitudes toward borrowing.
The funding round lwas ed by Cornerstone Ventures, with participation from Shepherd’s Hill Private Equity, ESV-Arthya AIF, Roots Ventures, Innoven Capital, and Alteria Capital.
