Fi Discontinues Banking Services in India
Fi, a neobank in India, is set to discontinue its banking services, marking the end of more than four years of collaboration with Federal Bank. Customers are now being directed to manage their savings accounts via the bank’s mobile app as the Fi interface diminishes.
Founded in 2019 by former Google Pay India executives Sujith Narayanan and Sumit Gwalani, Fi launched a banking service in partnership with Federal Bank in 2021. This service focused on providing digital savings accounts and money management tools, primarily aimed at younger users. The Bengaluru-based startup claims to have serviced over 3.5 million customers and handled more than 1 billion transactions. Notable investors include Ribbit Capital, B Capital, Alpha Wave Global, and Sequoia Capital India, which became Peak XV Partners in 2023.
This week, Fi users received an email notifying them of the upcoming discontinuation of banking services on the app. The company emphasized that Federal Bank savings accounts will still be operational and can only be accessed through the FedMobile app.
“While banking services on the Fi app will come to an end soon, your Federal Bank savings account will continue to be active and fully functional. Rest assured, your funds remain secure and accessible at all times,” read the email, which was also confirmed by TechCrunch.
Federal Bank sent a separate communication to its customers, detailing the end of its partnership with Fi as part of a “business restructuring,” urging clients to use its own digital platforms to access their accounts.
“Our collaboration with Fi is coming to an end. Your account will stay the same; only the access channels will change,” the bank’s email stated.
Fi had been competing with other neobanks like Jupiter, Open, and Slice and had raised around $169 million across five funding rounds.
Interestingly, while the startup is stepping back from its core banking services, it is not completely exiting the market. Narayanan, in a recent LinkedIn post, indicated that the company is shifting its focus toward “deep technology” and artificial intelligence solutions for startups and large enterprises, suggesting that some products will be phased out during this transition.
“We questioned where we could have the most significant impact and build something sustainable. The answer continuously pointed towards deep technology, AI, and complex system development for businesses,” Narayanan expressed.
Reports confirm that new users can no longer open savings accounts through the Fi app, receiving notices that this option is unavailable. However, Fi has not commented on its strategic direction or future plans, nor has Bundesbank responded to inquiries.
