Rural-focused fintech startup Jai Kisan secures NBFC license, acquires stake in Kushal Finnovation Capital

Rural-focused fintech startup Jai Kisan has obtained a Non-Banking Financial Company (NBFC) license after acquiring a majority stake in Kushal Finnovation Capital, an NBFC specialising in supply chain financing.

The license empowers Jai Kisan to design and distribute customized financial products, including loans, directly from its own portfolio.

Additionally, the firm can now engage in co-lending partnerships with leading financial institutions, including public sector banks in India.

Expansion of services with new NBFC license

Previously, Jai Kisan's services were limited to offering financial products provided by its partner banks and NBFCs through its platform.

With the acquisition of the NBFC license, the company can now directly create and deliver financial solutions tailored to the specific needs of farmers and rural businesses. 

Who are the founders?

Founded in 2017 by Arjun Ahluwalia and Adriel Maniego, Jai Kisan is focused on bridging the financial gap in rural India.

The startup has developed a comprehensive digital ecosystem that connects corporates, rural intermediaries, and financial institutions to facilitate supply chain financing and buy-now-pay-later (BNPL) options for products such as agricultural inputs and equipment.

It claims to have partnered with over 350 corporates, served more than one lakh rural businesses, and assisted over eight lakh farmers, facilitating the disbursal of over Rs 6,000 crore in loans.

Appointing senior advisors

To strengthen its governance and risk management capabilities, Jai Kisan has expanded its advisory board, bringing in seasoned bankers like Arvind Kathpalia and Ravi Duvvuru as senior advisors.

Looking ahead, the firm is planning a new fundraising round in the next two to three quarters to support the operationalisation of its NBFC.