Fintech

Jai Kisan Acquires NBFC License, Acquires Stake in Kushal Finnovation Capital

• ByStartupStory     |    August 13, 2024

Rural fintech startup Jai Kisan has secured an NBFC (Non-Banking Financial Company) license through a strategic acquisition of Kushal Finnovation Capital Private Limited.

This acquisition marks a significant milestone for Jai Kisan, enabling the company to offer tailor-made financial solutions, including loans from its own portfolio. The NBFC license will also allow the fintech firm to enter into co-lending partnerships with various financial institutions, including public sector banks across India.

The NBFC license is a crucial addition for Jai Kisan, as it allows the company to operate as a non-banking financial entity. Unlike traditional banks, NBFCs provide a wide range of financial services and products but do not possess a full banking license. This strategic move will empower Jai Kisan to cater more effectively to the financial needs of rural businesses and farmers.

“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,” said Arjun Ahluwalia, co-founder of Jai Kisan, as per The Economic Times.

Founded in 2017 by Arjun Ahluwalia and Adriel Maniego, Jai Kisan is a rural-focused Neo Bank, offering a comprehensive solution for rural businesses and individual financial needs through its digital application, Bharat Khata. Neo Banks, such as Jai Kisan, operate entirely in the digital space, providing seamless and accessible financial services.

Arjun Ahluwalia, co-founder and CEO of Jai Kisan, also holds the position of non-executive director at Kushal Finnovation Capital. This dual role positions him to oversee the integration and expansion of Jai Kisan’s financial services portfolio following the acquisition.

Jai Kisan’s digital network is well-developed, connecting corporations, rural intermediaries such as distributors, retailers, and suppliers, as well as financial institutions including banks and NBFCs. This network facilitates supply chain financing and buy-now-pay-later (BNPL) options for agricultural inputs and equipment, contributing to the growth of rural businesses.

Since its inception, Jai Kisan has partnered with over 350 corporates and served more than 100,000 rural businesses. The company claims to have assisted over 800,000 farmers and facilitated the disbursement of more than ₹6,000 crores in loans.

In 2022, Jai Kisan raised $50 million in equity and debt as part of the first tranche of its Series B funding round. The funding round saw participation from new investors such as DG Daiwa Ventures, Yara Growth Ventures, and GMO Venture Partners, along with existing investors Blume Ventures, Arkam Ventures, Mirae Asset, and Snow Leopard Ventures.

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