Shivalik Small Finance Bank Secures INR 100 Cr in Equity Funding Led by SMBC Asia Rising Fund The focus will be on developing scalable solutions aimed at India's underserved micro, small, and medium enterprises (MSMEs) and retail segments, especially in semi-urban and rural areas.
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Shivalik Small Finance Bank (SSFB) has announced that it has raised INR 100 crore in equity capital in a funding round led by SMBC Asia Rising Fund from Japan, the corporate venture capital arm of Sumitomo Mitsui Banking Corporation. The round also saw participation from existing investors Accel, Quona Capital, Lightspeed, and Sorin Investments.
The bank stated that the fresh capital will be used to enhance its technology infrastructure, expand its workforce in key areas such as product, engineering, and operations, and strengthen its banking-as-a-service (BaaS) offerings. The focus will be on developing scalable solutions aimed at India's underserved micro, small, and medium enterprises (MSMEs) and retail segments, especially in semi-urban and rural areas.
Anshul Swami, MD and CEO of Shivalik Small Finance Bank, said, "We are extremely pleased to onboard SMBC Asia Rising Fund, backed by SMBC, as a valuable and strategic partner in our journey of building a digital-first retail bank. At Shivalik, we are building a strong digital foundation to serve MSME and retail customers across Bharat. Our growth plans have banking-as-a-service as a key pillar, powering a range of use cases through innovative products and easy partner integrations."
Shivalik Small Finance Bank is notable for being the first urban cooperative bank in India to transition into a small finance bank under the Reserve Bank of India's voluntary transition scheme in April 2021. Established in 1997 as Shivalik Mercantile Co-operative Bank, it now operates on a cloud-native architecture powered by Infosys Finacle Core and Digital Banking Suite.
Rajeev Kannan, Managing Executive Officer and Head of India Division at SMBC, said, "SMBC Group is deeply committed to contributing to the broad-based growth of the Indian economy. Through our collaboration with Shivalik, leveraging its digital-native technology stack and strategic partnerships with high-growth external platforms, we are excited to advance the provision of inclusive and scalable financial solutions across India."
As of the financial year 2024, the bank claims to serve more than nine lakh customers through 79 branches and 114 business correspondent outlets in 11 states. It has a workforce of around 800 employees, a business portfolio exceeding INR 6,000 crore, and annual revenue of INR 423 crore.
Shivalik offers a range of retail and MSME-focused products including savings accounts, fixed deposits, gold loans, overdrafts, and digital payment solutions, alongside insurance partnerships with major providers.
