Indian start-up Jai Kisan, a commercial bank seeking to provide financial services to rural India with single-digit penetration, has raised $ 30 million in a new funding round to expand its business. Said on Monday.
Hundreds of millions of people now live in rural areas in India. Most of them don’t have a credit score. The profession they work on (mainly agriculture) is not considered a business by most lenders in India. These farmers and other professionals also fall into a high-risk category for banks to grant loans because their credit history is also undocumented.
Much of the credit collected by these people will eventually be invested in unproductive use, leading to higher interest rates and higher default rates.
Headquartered in Mumbai, 3 years old Jai Xan Is trying to address this by treating farmers and other similar professionals as businesses rather than consumers.
The startup has developed a unique system (called Bharat Khata) that gives individuals and businesses access to cheap funding. Commercial transactions.
Arjun Ahluwalia, co-founder and CEO of Jai Kisan, said financial services are essential for these individuals as the economy as a whole depends on them. “Buying now and paying later is the way most people shop in India. Credit is the expectation of Indian customers, not the value-added service,” he said in an interview with TechCrunch. Told.
“If a customer has formal funding, it’s not just the customer that works. It’s the entire ecosystem that revolves around the customer’s interests,” he said, by crediting the customer at the time of purchase. With the rise of Bajaj Finance, which helped some businesses thrive in, and Xiaomi in India, in India Largest smartphone vendorSelles a large number of devices to customers on a monthly installment plan.
The Bharat Khata service, launched in April last year, has achieved an annual GTV run rate of over $ 380 million in more than 25,000 stores by the fiscal year ending March this year, the startup said.
“Jai Kisan funds more than 15% of its transactions, demonstrating its monetization potential and quality of commerce. High quality transaction visibility and virality. The capabilities have allowed Jai Kisan to grow its business by more than 50% in three months. The unprecedented growth trajectory is Jai Kisan’s efficient capital expansion focused on the credit needs of its core customers. It’s a proof of ability. “
With operations in eight Indian states in South India, the startup is now aiming to expand its presence and increase its workforce nationwide. On Monday, the company announced that it had raised $ 30 million in a Series A round led by Mirae Asset, Syngenta Ventures, and existing investors Blume, Arkam Ventures, NABVENTURES, Prophetic Ventures, and Better Capital.
An unspecified amount of funding was raised as debt from Blacksoil, Stride Ventures, and Trifecta Capital.
“Jai Kisan is about to disrupt the rural financial industry and we are delighted to be part of their growth story. With Jai Kisan’s illustrious growth, excellent asset quality and expanding footprint, Jai Kisan is in this position. It has become a very differentiated player in the segment, “said Ashish Dave, CEO of India Venture Investments, a Korean company, Mirae Asset.
“Mirae Asset always believes in helping companies aim to become category leaders, as evidenced by other investments, and Jai Xan embarks on a journey to do so for rural finance. I believe it is, “he added.
Like many fintech startups, Jai Kisan has traditionally relied on banks and other financial institutions to lend to businesses. The startup said it plans to raise 20% of all loans in-house in the future. This is also why we are raising some money in debt in the new round.
Jai Kisan, a fintech startup aimed at rural India, raises $30 million – TechCrunch Source link Jai Kisan, a fintech startup aimed at rural India, raises $30 million – TechCrunch