Novio Raises Rs 100 Cr Series A Led by Cornerstone Ventures

Fintech startup Novio has successfully raised Rs 100 crore in a Series A funding round, with Cornerstone Ventures leading the investment. The round also saw participation from Shepherd’s Hill Private Equity, ESV-Arthya AIF, Roots Ventures, Innoven Capital, and Alteria Capital.

The newly acquired capital will be utilized by Novio to scale its distribution network, with a particular focus on expanding into Tier II cities and beyond. Additionally, the funds will support product development and the enhancement of AI-driven credit advisory features integrated into its UPI stack.

Launched in 2024, Novio offers credit cards backed by a fixed deposit, allowing customers to set their own credit limits without requiring income proof or credit history checks. These credit cards are linked to UPI for convenient payments, while the underlying fixed deposit continues to earn interest, up to 7% annually. Novio collaborates with banking partners such as SBM Bank and DCB Bank.

Novio’s Founder & CEO, Aditya Gupta, stated, “Credit is India’s most aspirational financial product. Every young Indian wants it, but the system has historically been inaccessible. In India where having a credit card is often seen as a debt trap, with a fixed deposit, you can set your own credit limit and avoid overspending while enjoying the perks of a premium credit card.”

Vatsal Bavishi, Partner at Cornerstone Ventures, commented on the investment, “What Novio has built is rare; a product that solves a genuine access problem, a brand that consumers love, and a business model where the unit economics get better as you scale. India has 4 crore credit card holders today and 40 crores waiting to join.”

The company reports having surpassed one lakh active cardholders, attributing this growth to its digital distribution strategy, efficient tech-driven operations, and a product tailored to Indian spending and saving habits. Novio aims to issue 50 lakh credit cards over the next three years.