Shivalik Small Finance Bank has secured Rs 100 crore in equity funding in a round co-led by Sorin Investments, the venture capital firm of Sanjay Nayar, and Lightspeed. Existing investors Accel and Quona also participated in this funding round.
The funding will be utilized by Shivalik Small Finance Bank to strengthen its technological infrastructure, strengthen its team, and enhance its product offerings, with a specific focus on serving small businesses and underserved segments.
Founded in 1998 by Yashvir Kumar Gupta, Shivalik Small Finance Bank holds the distinction of being the first small finance bank in India to transition from an urban cooperative bank.
The bank serves over 8 lakh unique customers across 175 branches located in Uttar Pradesh, Uttarakhand, Madhya Pradesh, Delhi NCR, Haryana, Rajasthan, Gujarat, Telangana, Karnataka, Maharashtra, and Tamil Nadu.
Anshul Swami, Managing Director and CEO of Shivalik Small Finance Bank, expressed enthusiasm about leveraging digital banking to expand their reach among small business owners and retail customers across India.
Mandar Dandekar, Partner at Sorin Investments, highlighted the strategic alignment between Sorin’s investment philosophy and Shivalik’s growth strategy. Sorin sees substantial opportunities in the financial services sector, particularly in enhancing access to financial services in rural and semi-urban areas.
The investment reflects a broader trend of increasing credit flow to MSMEs under priority sector lending norms, as evidenced by recent data from the Reserve Bank of India. In April 2024 alone, MSMEs secured Rs 24.6 lakh crore in gross bank credit, marking an 18.1% increase from the previous year.