India neobank Fi winds down banking services on its platform

India’s neobank Fi is discontinuing banking services on its platform more than four years after launching them in partnership with Federal Bank, directing customers to access their savings accounts through the bank’s mobile app as it winds down the Fi interface.

Founded in 2019 by former Google Pay India executives Sujith Narayanan and Sumit Gwalani, Fi launched its app-based banking service in partnership with Federal Bank in 2021 to offer digital savings accounts and money management tools aimed at younger users. The Bengaluru-based startup says it has served more than 3.5 million customers and completed over a billion transactions through its platform. It counts investors including Ribbit Capital, B Capital, Alpha Wave Global, and Sequoia Capital India, which spun off as Peak XV Partners in 2023.

This week, though, customers who opened accounts through the Fi app received an email stating that banking services on the platform will soon be discontinued. The fintech said customers’ savings accounts with Federal Bank will remain active and must now be accessed through the bank’s mobile banking app, FedMobile.

“The banking services on the Fi app will soon be discontinued; however, your Savings Account with Federal Bank remains active and fully operational. Your funds remain completely safe and accessible at all times,” the company said in the email, reviewed by TechCrunch.

In a separate email, Federal Bank told customers that its partnership with Fi was ending as part of a “business re-alignment,” advising them to access their accounts through its own digital channels.

“Our partnership with Fi is ending. Your account remains the same and only the channel through which it is accessed is changing,” the bank said in the email.

Fi was competing with the likes of Jupiter, Open, and Slice. The startup has raised about $169 million across five funding rounds, per Tracxn.

While the startup is vacating its primary business, the company has indicated that this is not a complete shuttering. Last month, Fi co-founder Narayanan said in a LinkedIn post that the company was realigning its strategy to focus on building “deep technology” and artificial intelligence systems for startups and large enterprises, adding that some products would sunset as part of the transition.

“We asked where we do our strongest work, and where we can build something that truly lasts. The answers kept pointing in one direction – deep technology, AI, and building complex systems for startups & large enterprises alike,” Narayanan wrote.

TechCrunch independently confirmed that new users can no longer open savings accounts through the Fi app, which now displays a message saying the option is no longer available. However, Fi did not respond to requests for comment on its strategic shift and plans for the future. Federal Bank also did not respond to requests for comment.