Bengaluru-based travel fintech Niyo has agreed to acquire certain assets of Capital India Finance’s RemitX foreign exchange business for Rs 11.4 crore, expanding its physical presence in India’s cross-border payments market.
The transaction will be carried out through Kanji Forex, Niyo’s wholly owned subsidiary.
Capital India Finance’s board approved the transfer on 31 August 2026 and the startup entered into an Agreement for Purchase of Assets with Kanji Forex on the same day.
The deal is expected to be completed by 31 October 2026, subject to regulatory approvals and other conditions.
According to information provided by Niyo to the Economic Times, the transaction will add 32 RemitX branches across more than 30 cities in 16 states, including tier-II and tier-III markets.
Niyo also said the deal will bring the RemitX brand, more than 200 employees and a network of more than 2,500 distribution partners into its forex business.
The partner network includes travel agents and overseas education consultants, giving Niyo a larger physical distribution channel alongside its digital services.
The acquisition builds on Niyo’s move into regulated foreign exchange services through Kanji Forex. Niyo’s parent company, Finnew Solutions, acquired Kanji in August 2025, allowing the fintech to expand into foreign currency, forex cards and outward remittances.
The regulatory framework for such businesses was revised this year.
The RBI notified the Foreign Exchange Management (Authorised Persons) Regulations, 2026 on 30 April, with the rules published in the Official Gazette on 6 May.
Under the rules, Authorised Dealer Category-II, or AD-II, entities can undertake non-trade current-account transactions other than gifts and donations, as well as foreign trade transactions of up to Rs 25 lakh per transaction.
The move follows Capital India’s divestment of its housing finance business during the 2025-26 financial year.
indianstartupnews.com