Shivalik Small Finance Bank (SFB) has raised Rs 100 crore in equity capital from a clutch of investors led by SMBC Asia Rising Fund- Japan, the corporate venture capital arm of Sumitomo Mitsui Banking Corporation (SMBC).

Besides the bank’s existing investors, Accel, Quona Capital, Lightspeed and Sorin Investments also participated in this funding round. 

Shivalik SFB will use the funds to strengthen its technology stack, expand its workforce and develop scalable solutions through its rapidly growing banking-as-a-service (BaaS) proposition. The aim is to build a digital-first bank, focused on the underserved MSME (micro, small and medium enterprises) and retail segments.

"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. We believe that our technology stack, depth of banking knowledge, and commitment to partners will continue to allow us to deliver scalable solutions that resonate with our core audience," Shivalik SFB managing director and CEO Anshul Swami said.

Originating as Shivalik Mercantile Co-operative Bank in 1997, Shivalik SFB has a legacy of over 25 years in retail banking. It became the first urban cooperative bank in India to transition into a small finance bank in April 2021 under the Reserve Bank of India's voluntary transition scheme.

The bank operates with a digital foundation built on Infosys Finacle's Core and Digital Banking Suite, allowing it to deliver seamless, cloud-native experiences across web and mobile platforms.

Said Rajeev Kannan, managing executive officer & head of India division at SMBC, "Through our collaboration with Shivalik, leveraging its digital-native technology stack and strategic partnerships with high-growth external platforms, we are excited to advance the provision of inclusive and scalable financial solutions across India."

As of FY 2024, Shivalik serves over 9 lakh customers across 79 branches and 114 business correspondents (BC) outlets in 11 states, with a workforce of around 800 employees. The bank has a business portfolio of over Rs 6,000 crore and generated annual revenue of Rs 423 crore in the last fiscal year.