Y Combinator-backed neo-banking startup Akudo is winding down its core operations, effectively shutting down in September 2023. The company, which provided digital banking and debit cards for teenagers, was forced to discontinue its primary UPI services due to a new Reserve Bank of India directive prohibiting UPI in co-branding arrangements. With over 70% of its business reliant on UPI, this regulatory shift was a critical blow. Compounded by unsuccessful fundraising efforts and dwindling capital, the company ceased onboarding new users and is closing its operations entirely. The fintech startup had raised $4.2 million in a 2021 funding round.
