Vinay Bagri, CEO & Co-Founder, NiYO, tells us how the NiYO card and app can help salaried people save taxes and increase their take-home salary.
Question: How is NiYO different from other market operators in a similar business?
Vinay Bagri (VB): At the core of NiYO is a digital account, which comes with a multi-wallet card holding multiple wallets, such as:
- Mobile & broadband
- Child education
- Business expense
- Professional research
NiYO offers a full- stack tax benefit solution that includes planning, declaration, usage-tracking and tax filing for employees. A NiYO card can be used at more than 15 lakh online and offline stores across India. During a transaction, NiYO automatically detects the category of the merchant and deducts the amount from the corresponding wallet. NiYO is 100% compliant with RBI and income tax regulations. In addition to tax savings, a NiYO card can also be used as an international travel card with zero currency exchange premium. NiYO recently introduced innovative 'Split Transaction', which ensures tax savings on every rupee spent. Users can track their transactions online through the NiYO mobile app and also file their taxes through NiYO.
Q: What is the business model and how does it benefit employees?
VB: NiYO automates the entire tax structure for salaried employees. Users can simply spend and forget on NiYO cards, as NiYO's AI will do the heavy lifting to save taxes for them and help them save up to INR 1,00,000 in taxes annually and increase the take-home salary by up to 10%.
Q: In this converging world of finance and HR, how does NiYO aid the finance function?
VB: It makes the finance function transparent and compliant; it helps the functions in being audit-ready at all times. NiYO has already helped 50,000 blue-collar employees get onto the formal payroll process through its digital account. This has resulted in transparency in salary payment and reimbursement processes. With the NiYO digital account, more than 25,000 white-collar employees have increased their take-home salary by up to 10%.
With the digitization of employee benefits management process, corporates have increased their productivity by 30%. With NiYO, corporates are now 100% compliant with RBI and income tax regulations. With NiYO, organizations are transparent, compliant and audit-ready.
Q: In just a year-and-a-half, NiYO has tapped into more than 500 corporates and is being used by over 100,000 salaried employees. What is the value-proposition that it offers to corporates?
VB: We offer three key values: Compliance, convenience and cost- effectiveness.
The key features of the product and how it impacts different business functions are the following:
- Digitization of payout process
- Increased productivity
- Easy to use
- Compliant with RBI norms and Income Tax regulations
- Audit-ready any time
- Increased employee retention and engagement
- Wide acceptance of NiYO card
- 100% secure
- Saves up to INR 1,00,000 in taxes annually
- Increases take-home salary by up to 10%
Q: As for employees, what are the unique benefits?
VB: There are 7,50,00,000 salaried employees in India and they all have one question in common: "How do I save tax?" But very few people know that the Govt of India has exempted 22 items from taxation. Lack of awareness is costing salaried individuals INR 1,00,000 every year.
With NiYO's innovative digital account, employees can increase their take-home salary by up to 10% and save up to INR 1,00,000 in taxes annually.
Q: NiYO recently raised $13.2 million (85 crore) in Series A funding. What is the vision that is driving its forward march?
VB: Distribution – we aim to reach all tier 1, 2 & 3 cities across India and be a means for change at the grass-root level. Continuous product development – we aim to make tax-saving simple for salaried employees in India.
Q: Is the concept unique to India or do we have examples abroad?
VB: It is a global first and will have the possibility of rollout in multiple countries.