Youth focused Neobanking startup Muvin has shut down its operations, according to RBI’s directive to stop using Unified Payments Interface (UPI) in a co-branding arrangement.

The company sent a notification to its users which stated, “muvin card program has been closed. Any available balance is being migrated to issuer Livquik app. The migration is expected to be finished by 1st Feb and we would notify nextsteps to access your balance. Thank you for the support and we regret that muvin is unable to support your journey towards financial literacy.”

In June 2023, RBI directed PPI issuers to stop UPI in a co-branding arrangement. The directive forced DreamX (Dream11), Fampay, Akudo, Muvin and CheqUPI to discontinue UPI services as they did not hold PPI license.

Recently, Akudo also shut down its wallet operations. Besides Muvin, LivQuik was also a PPI issuer for Akudo. The largest player in this space, Fampay also pivoted to a full-fledged neobank from a teen only due to RBI directive. The firm also found it tough to raise follow-on money and saw top level exits and fired nearly 80 employees in 2023.

Muvin, which was Co-founded by Vineet Gupta and Mukund Rao, used to cater both youth and teens through its prepaid card and mobile app. Before shutting down all the operations, the company raised $3 million in a pre-Series A round led by WaterBridge Ventures in January 2022 and a seed round of over $1 million in April 2021.

Read More News :

India's Largest Energy Exhibition & Conference to be held in Goa

Zomato CEO Ventures into Artisanal Feni with First Investment