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Neobanking startup Muvin shuts down operations: report

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Neobanking startup Muvin shuts down operations: report

New Delhi, Feb 5 (IANS) Neo-banking startup Muvin has shut down operations, following the Reserve Bank of India’s (RBI) directive to stop using the Unified Payments Interface (UPI) in a co-branding deal .

A notification sent by Muvin to its users stated that the “Muvin Card Program has been closed.”

“Any available balance is being migrated to the ‘Livquik Issuer’ app. The migration is expected to be completed on February 1st and we will notify you of the next steps to access your balance. Thank you for your support and we are sorry that Muvin is not can support your journey to financial literacy,” the notification said.

The Muvin app was also not available on the Google Play Store, reports Entrackr.

Co-founded by Vineet Gupta and Mukund Rao, Muvin used to cater to teenagers and young adults through its prepaid card and mobile app.

Muvin had raised $3 million in a pre-Series A round led by WaterBridge Ventures in January 2022.

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In June 2023, the RBI had directed Prepaid Payment Instrument (PPI) issuers to stop UPI in a co-branding arrangement.

The directive had forced DreamX (Dream11), Fampay, Akudo, Muvin and CheqUPI to suspend UPI services as they did not have a PPI license.

Akudo, the leading US investment firm backed by Y Combinator, a neo-banking platform focused on teenagers, also shut down its core UPI and cards business in September last year.

Akudo, founded by Lavika Aggarwal, Khanna and Jagveer Gandhi, is a digital bank for teenagers that offers debit cards that can be controlled by parents.

The company raised $4.2 million led by Y Combinator, JAFCO Asia, Incubate Fund India and AET Fund.

Tribe Capital, Cabra Capital and a few other investors also participated in the round, which was announced in September 2021.

— IANS

na/khz

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