Shivalik Small Finance Bank raised Rs 111 crore in equity from global venture capital firms Accel and Quona Capital along with Bharti AXA Life Insurance.
Announcing the equity raising Wednesday, the bank said it plans to use the funding to enhance its tech stack, strengthen its team, and deepen partnerships to boost its lending to small and medium size businesses.
Noida-based Shivalik is the first small finance bank in India to have transitioned from an urban cooperative bank.
Bank managing director Anshul Swami said that the bank is focusing on tech-driven innovations and strategic partnerships in the financial services space. “This investment will help us accelerate our growth as we look to leverage digital banking adoption by small business and retail customers,” he said.
The bank has over 5.6 lakh customers while it operates through 46 branches and 21 exclusive business correspondent branches across northern India.
“Technology is increasingly becoming the financial services front-end for all Indians and is a key driver of financial inclusion,” said Rachit Parekh, Principal at Accel. “Banks like Shivalik, that understand this shift, have demonstrated financial prudence, and are investing in technology, are very well poised to work with fintechs and increase access to financial products,” he said.
“At Quona, we focus on finding and supporting solutions that leverage technology to radically improve the quality, access and affordability of financial services in emerging markets,” said Varun Malhotra, partner at Quona.
Equirus Capital acted as financial advisor to Shivalik Small Finance Bank for the equity investment.