India neobank Fi is ending banking services on its platform

India’s neobank Fi has stopped offering banking services on its platform more than four years after launching it in partnership with Federal Reserve Bank, directing customers to access their savings accounts through the bank’s mobile app while winding down the Fi interface.

Founded in 2019 by former Google Pay India executives Sujith Narayanan and Sumit Jwalani, Fi launched its app-based banking service in partnership with Federal Reserve Bank in 2021 to offer digital savings accounts and money management tools targeting younger users. The Bengaluru-based startup says it has served over 3.5 million customers and completed over 1 billion transactions through its platform. It includes investors including Ribbit Capital, B Capital, Alpha Wave Global and Sequoia Capital India, which spun out Peak XV Partners in 2023.

However, customers who opened accounts through the Fi app this week received an email stating that banking services on the platform would soon be discontinued. Customer savings accounts with the Fed will remain active and should now be accessed through the bank’s mobile banking app, FedMobile, the fintech company said.

“Banking on the Fi app will be discontinued soon; however, your savings account with Federal Reserve remains active and fully functional. Your funds remain completely secure and accessible at all times,” the company said in the email reviewed by TechCrunch.

In a separate email, the Fed told customers that its partnership with Fi would end as part of a “business reorganization,” and advised them to access their accounts through its own digital channels.

“Our partnership with Fi is ending. Your account remains as it is and only the channel through which it is accessed will change,” 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, according to Tracxn.

While the startup is exiting its core business, the company noted that this is not a complete shutdown. Last month, Fi co-founder Narayanan said in a LinkedIn post that the company was realigning its strategy to focus on building “deep tech” and AI systems for startups and large enterprises, adding that some products would die as part of the transition.

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

TechCrunch has 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. The Fed also did not respond to requests for comment.