Niyo to acquire RemitX forex business from Capital India Finance

Travel fintech Niyo has agreed to acquire the forex and cross-border business of Capital India Finance Ltd, operated under the RemitX brand, for ₹11.4 crore, in a deal that will expand its branch and distribution network in India’s foreign exchange market.

The transaction will add RemitX’s 32 branches across more than 30 cities and 16 states to Niyo’s existing physical network. Niyo said its branch presence will rise to more than 40 locations after the deal closes.

The acquisition will also bring more than 2,500 distribution partners, including travel agents, overseas education consultants and corporate clients. More than 200 RemitX employees, including its leadership team, are expected to move to Kanji Forex Pvt Ltd, Niyo’s wholly owned subsidiary.

The deal comes as Niyo expands its regulated forex business beyond its digital platform. The company entered the segment in 2024 through the acquisition of Kanji Forex, which holds an Authorised Dealer Category-II (AD-II) licence.

Niyo expands physical forex presence

RemitX’s network gives Niyo access to a larger branch and partner base, particularly in Tier 2 and Tier 3 cities. The business caters to customers travelling overseas, students heading abroad and corporates with cross-border requirements.

The acquisition will allow Niyo to distribute foreign currency, forex cards and outward remittance services through a combination of branches, partners and digital channels.

For RemitX’s existing distribution partners, the transaction is expected to add access to Niyo’s technology platform and a broader set of cross-border products.

The deal also moves Niyo closer to a previously stated target of building a 50-branch network over the next two to three years.

RBI rule changes open up AD-II business

The transaction comes shortly after changes to the RBI’s framework for AD-II entities.

In May, the central bank widened the activities permitted under the AD-II licence to cover most non-trade current-account transactions and certain small-value trade transactions. It also allowed AD-II entities to expand branches through intimation instead of seeking prior approval and made the licences perpetual.

Kanji Forex received a perpetual AD-II licence from the RBI on August 5, with the expanded scope covering trade remittances and family maintenance remittances.

The regulatory changes have increased the potential range of services that non-bank AD-II entities can offer. For Niyo, the RemitX acquisition adds an existing branch and distribution network to its recently expanded licence.

Capital India Finance to focus on NBFC business

Capital India Finance is selling the RemitX business as part of a strategy to consolidate its focus on its NBFC platform and digital businesses under Rapipay.

RemitX has operated for more than six years and has built its distribution across 30-plus cities. Its employees and existing business operations are expected to transition to Kanji Forex following completion of the transaction.