Shivalik Small Finance Bank, India’s first bank to transition from an urban cooperative bank, has successfully raised INR 100 crore in equity capital. The funding round was led by SMBC Asia Rising Fund, the corporate venture capital arm of Sumitomo Mitsui Banking Corporation (SMBC), with participation from existing investors including Accel, Quona Capital, Lightspeed, and Sorin Investments. This capital injection marks a significant milestone in Shivalik’s journey to become a digital-first bank, particularly focused on serving underserved MSME and retail segments in India.
The raised funds will be used to enhance the bank’s technology infrastructure, expand its workforce in critical areas such as product, engineering, and operations, and develop scalable solutions through its rapidly growing banking-as-a-service (BaaS) proposition. Shivalik aims to simplify financial access for small businesses and emerging consumer segments across semi-urban and rural regions of India, leveraging a strong digital foundation and a partner-first approach.
Anshul Swami, Managing Director & CEO of Shivalik Small Finance Bank, emphasized that the partnership with SMBC Asia Rising Fund is strategic in building a digital-first retail bank. He highlighted that banking-as-a-service will be a key pillar of growth, powering innovative products and enabling easy partner integrations to deliver scalable solutions for MSME and retail customers.
Shivalik Small Finance Bank has a legacy of over 25 years in retail banking, originating as Shivalik Mercantile Co-operative Bank in 1997. It became the first urban cooperative bank in India to transition into a Small Finance Bank in April 2021 under the Reserve Bank of India’s voluntary transition scheme. The bank operates with a robust digital platform built on Infosys Finacle’s Core and Digital Banking Suite, delivering seamless, cloud-native experiences across web and mobile channels.
Rajeev Kannan, Managing Executive Officer & Head of India Division at SMBC, said that the investment reflects SMBC Group’s commitment to supporting broad-based growth in the Indian economy. He noted that the collaboration with Shivalik, leveraging its digital-native technology and strategic partnerships, will advance the provision of inclusive and scalable financial solutions across India.
As of FY 2024, Shivalik serves over 9 lakh customers through 79 branches and 114 business correspondent outlets across 11 states, employing around 800 staff members. The bank manages a business portfolio exceeding INR 6,000 crore and generated annual revenue of INR 423 crore in the previous fiscal year. Shivalik offers a comprehensive suite of retail and MSME-focused products, including savings accounts, fixed deposits, gold loans, overdrafts, and digital payments, while partnering with major insurance providers like Bajaj Allianz, Go Digit, Kotak Life, LIC, and New India Assurance to provide integrated financial solutions to its growing customer base.
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