Shivalik Small Finance Bank raises Rs 100 crore in funding from Japan's SMBC, others

Shivalik Small Finance Bank recently raised Rs 100 crore in equity funding, led by SMBC Asia Rising Fund, the corporate venture capital arm of Sumitomo Mitsui Banking Corporation of Japan. Existing backers Accel, Quona Capital, Lightspeed, and Sorin Investments also participated.

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The infusion, the bank said, will be used to strengthen its technology infrastructure, expand teams in product, engineering, and operations, and accelerate its banking-as-a-service (BaaS) offering, a central plank of its growth strategy. The Noida-based lender is targeting underserved micro, small and medium-sized enterprises and retail customers, particularly in semi-urban and rural India.

“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,” said Anshul Swami, the bank’s managing director and CEO. 

“We believe our technology stack, depth of banking knowledge, and commitment to partners will allow us to deliver scalable solutions that resonate with our core audience.”

Founded in 1997 as Shivalik Mercantile Co-operative Bank, the lender became the first urban co-operative bank in India to transition into a small finance bank under a Reserve Bank of India voluntary scheme in 2021. It operates on Infosys Finacle’s core and digital banking platform, enabling cloud-native services across mobile and web channels.

Rajeev Kannan, managing executive officer and head of SMBC’s India division, said the collaboration would advance inclusive and scalable financial solutions by leveraging Shivalik’s digital-native architecture and network of partnerships.

Shivalik serves more than 900,000 customers through 79 branches and 114 business correspondent outlets in 11 states, supported by a workforce of about 800. In the fiscal year, it reported a business portfolio exceeding Rs 6,000 crore and annual revenue of Rs 423 crore. In addition to retail and MSME banking products, the lender offers insurance services through partners, including Bajaj Allianz, Kotak Life, LIC, and New India Assurance.