Rural-focused fintech startup Jai Kisan has secured a non-banking finance company (NBFC) license following its acquisition of a majority stake in Kushal Finnovation Capital, an NBFC specializing in supply chain financing. Arjun Ahluwalia, cofounder and CEO of Jai Kisan, also serves as a non-executive director at Kushal Finnovation Capital.
With this new NBFC license, Jai Kisan will be able to offer customized financial products, including loans from its own portfolio. The company can now enter co-lending partnerships with financial institutions, including public sector banks in India.
Previously, Jai Kisan’s financial offerings were limited to products provided by its partner banks and NBFCs through its platform. The new license enables Jai Kisan to directly create and deliver tailored financial solutions to farmers and rural businesses.
Ahluwalia commented on the development, noting the transformative effect of positive government reforms and the availability of affordable data and smartphones in rural India. The NBFC license will allow Jai Kisan to offer credit products to farmers and rural businesses in a more tailored and accessible manner.
Jai Kisan, founded in 2017 by Ahluwalia and Adriel Maniego, is a technology-driven financial services platform serving rural businesses, individuals, and farmers. The company has built a digital ecosystem that connects corporates, rural intermediaries (distributors, retailers, and suppliers), and financial institutions (banks and NBFCs) to facilitate supply chain financing and buy-now-pay-later (BNPL) options for agricultural inputs and equipment.
Since its inception, Jai Kisan has partnered with over 350 corporates, served more than 100,000 rural businesses, assisted over 800,000 farmers, and facilitated the disbursal of over Rs 6,000 crore.
The company has also expanded its advisory board with senior bankers such as Arvind Kathpalia, former group president and chief risk officer at Kotak Mahindra Bank, as a senior credit risk advisor, and Ravi Duvvuru, former president and chief compliance officer at Jana Small Finance Bank, as a senior advisor on governance and regulatory compliance.
In 2022, Jai Kisan raised $50 million in equity and debt as part of the first tranche of its Series B round, with new investors including GMO Venture Partners, Yara Growth Ventures, and DG Daiwa Ventures, alongside existing investors Blume Ventures, Arkam Ventures, Mirae Asset, and Snow Leopard Ventures.
