Segment – B2B in Infrastructure segment; Platform offering API- enabled KYC and documentation solutions for banks and enterprises.
About
Digio is a fast growing, funded, profitable product startup based in Bangalore founded in 2016 by ex-Flipkart, Twitter folks; Abhinav Parashar and Sanket Nayak, bringing existing paper based processes online.
The company is building software products and applications to power business processes, to go paperless and digital in order to bring down cost overheads, time involved in erstwhile paper based business processes, thereby being instrumental in increasing operational efficacy and staff productivity for businesses.
Products of digio is DigiSign – Instant Digital/ Electronic Signning, DigiKYC – Digital KYC Solutions, DigiDocs – Automate Document Flows, DigiCollect – Collect Recurring Payments via- e- NACH.
Existing Digio platform can be used for digitally signing documents like – Agreements, Forms, Self-Attested Documents, Approvals etc. Digio Gateway component can enable any existing application to go paperless in no time using Digio APIs and SDKs. Leading companies across E-Commerce, Banking & Finance, Telecommunications, Real estate domains are using Digio for various day to day basis use-cases.
Company raised $11.5M in its latest funding round, which was seed round held on dec 30, 2022. company has raised a total funding of $11.9M over 3 rounds, there are 3 institutional investors including Rainmatter Technology, Straddle Capital, Groww & 1 Angel Investor Pratyush Prasanna.
Key staff
Abhinav Parashar, CEO & Co-Founder – has no background in financial sector but in software development sector. He previously worked with Flipkart (sep 2011 – oct 2015) and Runware Software (jun 2009 – aug 2011) as a software development engineer. Completed bachelor’s of technology in computer science and engineering from IIT, hyderabad. http://www.linkedin.com/in/abhinavparashar/
Sanket Nayak, Co-Founder – he was previously worked with twitter as a senior product manager & STPM (dec 2014 – jul 2015), worked as a director of operations at zipdial mobile solutions pvt ltd (Oct 2012 – Nov 2015), he worked with CRIF high mark credit information services pvt ltd. as business development & client relations (Jan 2011 – Oct 2012), Also he was a head of business development at earth2orbit (Dec 2008 – Jan 2011). Completed Master’s degree in Astronautical/ Space Engineering from University of Southern California, Master’s degree in Space studies form International space university, Baccalaureate in Architecture, Structural Engineering, Architecture, Planning, Construction management from Visveshvaraya Technical University. http://www.linkedin.com/in/sanketnayak/
Philosophy/key insight
Their website blog mentions the following –
Aadhaar: The Identity Proof which remains the ‘Rule of thumb’ in India – Instant identity verifications can help establish trust in the onboarding process. Today with the advancement of technology and secured Aadhaar based solutions, digitization comes with high quality, quick, accurate check results to help prevent fraudulent activities. DIGIKYC aids in taking informed decisions on the go- anytime, anywhere and ensures a secure and smooth on- boarding experience.
https://blog.digio.in/2021/11/aadhaar-identity-proof-which-remains.html
The Need for Biometric Verification and Liveness checks in a Digital Onboarding Journey – The advantages of Liveness detection and biometric verification are innumerable. Regulated entities like SEBI also accept liveness check which are carried out through OTP based identity verification such as the Digilocker authentication. https://blog.digio.in/2021/06/the-need-for-biometric-verification-and.html
Automating the identity verification process through Artificial Intelligence – The adoption of AI and ML technologies can significantly improve Know Your Customer and client onboarding processes for businesses, by leveraging AI, businesses can implement facial biometric recognition for identity verification, image processing for document validation, tampering detection, optical character recognition for converting scanned documents into computer- readable data, unstructured data analysis for intelligent document scanning and link analysis to understand relationships between entities. https://blog.digio.in/2021/05/automating-identity-verification.html
Media
Navigating The Regulator When Reaching Markets | Fire Up! Startup Insight Series | Abhinav Digio; Navigating Regulatory Challenges in the Startup Landscape
The intricate relationship between startups and regulatory challenges, particularly in industries like fintech and healthcare technology. It follows a startup’s evolution through the dimensions of digital signatures, KYC evolution, and transforming payment system, highlighting the importance of regulatory compliance. The journey of startup underscores the significance of early perceptions, collaborative support, and sector- specific regulations in navigating regulatory complexities. Abhinav told about the foundational steps for startups to initiate regulatory exploration, emphasizes the implications of non- compliance, and underscores the role of founders in effective regulatory navigation. The key takeaways include the value of vision, evolving ecosystem, adaptable strategies, and sector- specific focus.
Revolutionizing Document Management: The Digio Journey
Digio, a revolutionary platform in the field of document management. The platform’s genesis stemmed from the founders’ vision to create a centralized solution that replicates the dual function of traditional paper documents digitally. The company’s future vision involves global expansion and a continued commitment to delivering exceptional user experiences.
CEOTalks Episode 06 feat. Abhinav Parashar/ Digio; Transforming Industries: The Digital Evolution of Digio
The journey of Digio, a pioneering company focused on digitizing paper based and offline processes. Digio’s core mission centers on digital identity solutions, including digital signing and KYC, revolutionizing customer onboarding. They integrated with India’s Aadhaar system, and their incubation at Rainmatter facilitated growth. Their focus on digital solutions has revolutionized India’s ecosystem. Innovation thrives amidst challenges, driven by intrinsic motivation. Digio future involves addressing backend systems and propelling digital transformation globally.
Going Paperless- Sanket Nayak; Transforming Business Processes: Going Paperless in the Digital Age
The transition from paper- based processes to paperless workflow in the digital age. It covers the concept of digital transformation and its impact on both external customer- facing processes and internal operations. In sectors like banking and finance, stadardizing data models and utilizing digital signatures are crucial for efficient processes. It emphasizes the significance of digital signatures in facilitating the paperless evolution. For internal processes, creating customized workflow systems with digital signatures can eliminate paperwork. The benefits of going paperless include cost reduction, improved efficiency, and enhanced customer experiences.
Title: Groww acquires minority stake in fintech startup Digio, Outlook India, Date: 12 Jan, 2023. https://startup.outlookindia.com/investors/groww-acquires-minority-stake-in-fintech-start-up-digio-news-7156
Financial service platform Groww has acquired a minority stake in the fintech software as a service (SaaS) startup Digio, as reported by VCCircle. The company received in principle approval from the Reserve Bank of India in 2022 to operate as an account aggregator and payments aggregator. Digio had previously raised $375 thousand in funding from Zerodha’s Rainmatter and has been profitable for the past five fiscal years. In FY22, it reported a net profit of Rs 24 crore and a revenue of nearly Rs 83 crore.
Groww is a wealthtech startup that enables customers to invest inn stocks, direct mutual funds, ETFs, and IPOs. The platform also offers tools for analyzing stock performance and investment portfolios. The company had previously invested in fintech SaaS startup Hyperface and Indiabulls’ mutual fund to expand its investment products. In a series D funding round in October 2021, Groww secured $251 million, with lending participation from ICONIQ Growth and involvement from Alkeon, Lone Pine Capital, Sequoia Capital, Tiger Global.
NSDL ends Aadhaar e-sign services, Dec, 2019, https://timesofindia.indiatimes.com/business/india-business/nsdl-ends-aadhaar-e-sign-services/articleshow/72555746.cms
NSDL(National Securities Depository Limited) has abruptly halted Adhaar e-sign services due to technical issues and a directive from UIDAI. This move will impact brokerages, fintechs, and startups relying on these services for customer onboarding and document signing. The e-sign service allowed Aadhaar holders to digitally sign documents, simplifying transactions and verifications. However, technical glitches and the non-implementation of Aadhaar’s tokenization system hampered the process. This action might be linked to the Supreme Court’s ruling against private entities using Aadhaar, forcing brokerages and fintechs to discontinue Aadhaar based services. Consequently, physical onboarding will be required for new customers, affecting the convenience and efficiency of digital transactions.
Title: How this banglore based startup aims to drive paperless business processes. Media platform name: Entrepreneur Magazine, Date: Aug 31, 2016 https://www.entrepreneur.com/article/281632
The founders aim to eliminate cumbersome and expensive KYC processes in various industries. Their first product is a 1- click Digital Signature Gateway integrated with India’s Aadhaar. the startup received $400,000 in pre- series A funding led by Rainmatter Technologies, with Nitin Kamath, co-founder of Zerodha, as an advisor.
Analyst questions
- How would you define “digital transformation” in the context of business processes?
- What role do digital signatures play in the paperless evolution, and what are the legally valid options for digital signatures in India?
- What are some potential challenges that business might face during the transition to paperless operations?
- Can you provide insights into the process of overcoming challenges, particularly during the transition from space technology to software development and the creation of the initial prototype?
- In what ways does the adoption of paperless processes position businesses as more customer-centric entities?
- Can you elaborate on how Digio’s digital identity solutions have transformed the customer onboarding process, and what specific challenges did you encounter during this transformation?
- As Digio envisions delving deeper into integral backend systems, could you provide insights into the specific domains or industries you plan to target with your innovative solutions?
- How does the startup’s evolution through digital signatures, KYC evolution, and payment system transformation showcase its commitment to regulatory compliance?
- Could you elaborate on the role of co-founder Abhinav in the journey of Digio and how his background in tech contributed to the platform’s development?
- The collaboration with Zerodha was mentioned as a pivotal moment. Could you explain how this partnership came about and how it contributed to Digio growth and industry recognition?
Prepared by – Jayesh Baviskar, July 2023
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