Startup Originals Team
Shivalik Small Finance Bank has secured Rs 100 crore in equity funding, with the investment round led by SMBC Asia Rising Fund-the corporate venture capital arm of Japan’s Sumitomo Mitsui Banking Corporation (SMBC). The round saw continued support from existing backers including Accel, Quona Capital, Lightspeed, and Sorin Investments.
Purpose of the Funding:
The fresh capital will support enhancements in Shivalik’s technology infrastructure, help expand teams across product, engineering, and operations, and accelerate the bank’s banking-as-a-service (BaaS) initiative-a central pillar of its future growth strategy.
Focus on Underserved Segments:
Based in Noida, Shivalik Small Finance Bank is dedicated to serving underserved micro, small, and medium enterprises (MSMEs) as well as retail customers, especially across semi-urban and rural regions of India.
Banking Legacy and Technology Platform:
Founded as Shivalik Mercantile Co-operative Bank in 1997, the institution became the first urban co-operative bank in India to voluntarily transition into a small finance bank under an RBI scheme in 2021. Shivalik operates on Infosys Finacle’s core and digital banking platform, delivering seamless, cloud-native services accessible via mobile and web channels.
Current Reach and Financial Performance:
Currently, Shivalik serves over 900,000 customers through a network of 79 branches and 114 business correspondent outlets spread across 11 states, powered by a team of about 800 employees. In the most recent fiscal year, the bank reported a business portfolio surpassing Rs 6,000 crore and annual revenue of Rs 423 crore.
Statements from Leadership:
Anshul Swami, Managing Director and CEO of Shivalik Small Finance Bank, emphasized that BaaS remains key to their growth, powering innovative products and easy integrations with partners. Rajeev Kannan, Managing Executive Officer at SMBC India, noted that this partnership leverages Shivalik’s digital-native architecture and network to advance scalable and inclusive financial solutions throughout India.
Conclusion:
This significant funding round marks a major milestone for Shivalik Small Finance Bank’s ambition to build a truly digital-first financial institution. By enhancing technology and broadening outreach, the bank aims to deliver scalable, accessible banking solutions for India’s underserved sectors-capitalizing on innovation and powerful strategic partnerships.
