Noida-based Shivalik Small Finance Bank, on Wednesday has raised Rs 111 crore (around $14 million) in a round led by Accel and Quona Capital with participation from Bharti Axa Life Insurance.
The fresh funds will be used to enhance the tech stack, strengthen its team and deepen partnerships, according to a statement.
“We are on a track of growth focused 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,” said Anshul Swami, managing director and chief executive officer of Shivalik Small Finance Bank.
With over 5.6 lakh customers, Shivalik Small Finance Bank operates through 46 branches and 21 business correspondent branches across northern India.
Recently Moneycontrol reported that the small finance bank appointed Anshul Swami as its managing director and chief executive officer. Swami replaced Suveer Kumar Gupta who co-founded the bank.
“Banks like Shivalik, that understand this shift, have demonstrated financial prudence, and are investing in technology, are very well poised to work with fintech industry and increase access to financial products,” said Rachit Parekh, principal at Accel.
Shivalik Small Finance Bank became the first bank to convert from a Universal Cooperative Bank to a Small Finance Bank structure last year. As of March end, Its total advances stood at Rs 804.9 crore, while total deposits rose to Rs 1,244.5 crore.
In September, it modified its interest rates. The bank is now providing savings accounts, fixed and recurring deposits with interest rates up to 7%.
Equirus Capital acted as financial adviser to Shivalik Small Finance Bank for the equity investment.