Fintech Startup BankSathi raises $4 million in Pre-series A funding round

• ByStartupStory     |    January 9, 2023

Bangalore based social ecommerce platform BankSathi has raised $4M USD in funding from Kotak Securities, Lets Venture, We Founder Circle, Hem Securities and IPV (Inflection Point Ventures).

 Other investors who participated in the round include Recur Club, Liquiloans, Sunil Singhania (Abakkus), Kunal Shah (CRED), Dr Ritesh Malik (Innov8), Kailash Biyani (Asian Markets), Mukul Rastogi & Bhaswat Agarwal (ClassPlus), Varun Alagh (MamaEarth), Sameer Rastogi (India Juris), Manish Dabkara (EKI Energy), and Mukund Modi (MS Fincap).

The startup will deploy the funds towards hiring high-calibre employees across operations and accelerate the development of new products and technology. In addition, it will also invest resources to grow its agent network and geographic reach.

Founder and CEO Jitendra Dhaka, Banksathi, stated “We’re keen to make a big contribution in the prime minister’s mission ‘Develop India by 2047’ by increasing financial penetration through our tech-empowered financial advisors. With this funding, we will be able to expand product, technology, and distribution network at a faster pace.”

Based in Bangalore, BankSathi helps its customers to provide the right financial products with access to last mile users  in Tier II and Tier III cities and remote locations. The startup claims to use priority algorithms to recommend financial products to advisors, based on the customer’s profile and past transactions. According to the firm, this helps both customers and advisors receive the best recommendations. The company’s advisor includes insurance agents, chartered accountants, product advisors, financial analysts, retired bankers, and small business entrepreneurs.Currently, the increment has happened by 40X, serving three million+ customer base across 18,000 pin codes.

Previously, the startup was approved by IRDAI to avail an insurance license to the company to offer a more diverse portfolio of financial products to the customers. Currently, Banksathi is partnered with 60+ financial institutions, including HDFC Bank, Axis Bank, IDFC First, SBI, Kotak Mahindra Bank, and Bank of Baroda.In 20 months, the company made an ARR of $10 million.

Jaideep Hansraj, MD and CEO, Kotak Securities Limited said,  “Today, small and mid-sized financial advisors/micro-entrepreneurs are not able to directly work with financial institutions. BankSathi is enabling these micro-entrepreneurs to sell and earn extra income by selling financial products online and making themselves financially independent and educated.”

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