Rural-based fintech start-up Jai Kisan has secured NBFC licence through a major strategic acquisition of Kushal Finnovation Capital Private Limited.
As per media reports, the NBFC licence will help Jai Kisan offer tailor-made financial solutions including loans from its own portfolio. It would also enable the fintech firm into co-lending partnerships with financial institutions, including public sector banks in India.
An NBFC (Non-Banking Financial Company) license allows a company to operate as a non-banking financial entity. NBFCs are financial institutions that provide various financial services and products but do not have a full banking license.
“The NBFC licence allows us to cater to our farmer and rural business customers with credit products they want, how they want them, when they want them and where they want them – which is what they deserve,” Arjun Ahluwalia, co-founder of Jai Kisan said, as per ET.
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Founded in 2017 by Ahluwalia and Adriel Maniego, Jai Kisan is a rural-based Neo Bank. Its application - Bharat Khata provides a one-stop solution for rural businesses and individual financial needs. Neo Banks are entirely digital in their operations.
Arjun Ahluwalia, co-founder and chief executive officer of Jai Kisan is also the non-executive director of Kushal Finnovation Capital.
The fintech firm has a well-developed digital network which connects corporations, rural intermediaries (distributors, retailers and suppliers), and financial institutions (banks and NBFCs) to facilitate supply chain financing and buy-now-pay-later (BNPL) options like agricultural inputs and equipment.
Since its launch, Jai Kisan claims to have partnered with over 350 corporates. Reportedly, it has served more than one lakh rural businesses, assisted over eight lakh farmers, and facilitated disbursal of over Rs 6,000 crore.
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Jai Kisan reportedly raised $50 million in equity and debt as part of the first tranche of its Series B round in 2022.
The funding saw new investors including DG Daiwa Ventures, Yara Growth Ventures, GMO Venture Partners, alongside existing investors Blume Ventures, Arkam Ventures, Mirae Asset, and Snow Leopard Ventures.
