Bengaluru-based neobank Fi (registered as Epifi Technologies) officially announced a major strategic pivot, shifting its core business model from consumer-facing digital banking (B2C) to B2B technology services.
Co-founder and CEO Sujith Narayanan shared the news in a LinkedIn post, framing the move as a transition toward the “intersection of AI and B2B.”
The Core of the B2B Pivot
The company is moving away from its original goal of revolutionizing the retail banking experience for millennials and Gen Z.
- Focus Areas: Fi will now focus on building deep technology, artificial intelligence, and complex backend systems for other startups and large enterprises.
- Product Sunsetting: As part of the realignment, several consumer-facing products will be phased out.
- Impact on B2C: While Narayanan stated this “doesn’t diminish” their B2C journey, the shift effectively marks an exit from the neobanking “super-app” race to become a specialized SaaS/BaaS (Banking-as-a-Service) provider.
The Drivers Behind the Change
The pivot is a response to severe financial and regulatory headwinds that have hit the Indian neobanking sector.
1. Financial Challenges
- Burn Rate: In FY23, Fi posted a net loss of ₹300 crore (approx. $36 million) on an operating revenue of just ₹38 crore.
- High CAC: The company spent aggressively on marketing (₹132 crore in FY23) but struggled with low lifetime value (LTV) from its millennial user base.
- Runway: Reports indicate Fi’s cash runway had dwindled significantly, with some estimates suggesting only six months of capital left by early 2026.
2. Fundraising & Acquisition Struggles
Fi has faced a difficult fundraising environment since its last major round in July 2022 (valuation ~$525M).
- Talks Failed: The company reportedly held acquisition discussions with Jupiter, Slice, and Razorpay over the last year, but no deals were finalized.
3. Regulatory Constraints
Stricter RBI regulations on digital lending and “shadow banking” have squeezed the primary revenue streams for neobanks that don’t hold their own banking licenses.
Organizational Impact
The pivot has led to a significant restructuring of the workforce:
- Layoffs: Fi is implementing a fresh round of job cuts to align its team with the B2B tech mission.
- Prior Reductions: This follows a 10% workforce reduction in 2023. By early 2026, the company’s headcount had already shrunk to below 250 employees.
- Leadership Stance: Narayanan emphasized that the cuts are due to structural changes and not a reflection of individual talent or performance.
The Future: AI + Enterprise
By pivoting to B2B, Fi aims to monetize its proprietary tech stack—originally built for its own app—by selling it to traditional banks and other fintechs who need modern, AI-driven infrastructure.
