Shivalik Small Finance Bank (SSFB)which is gearing up to raise growth capital to the tune of INR 100 crore today announced the appointment of Equirus Capital, to facilitate the process. Shivalik recently became India’s first Small Finance Bank (SFB) to commence operations after a successful transition from an Urban Co-operative Bank (UCB) and now plans to leverage the funds for digital expansion through fintech partnerships, physical expansion, and product innovation.
Commenting on the milestone, Harsh Mittal, Chief Financial Officer, Shivalik Small Finance Bank said, “Our journey as a Small Finance Bank has been very exciting so far. The pace at which we have made progress to swiftly reach this stage is testimony to how meticulously we have planned our growth strategy, complemented by steps taken along the way to ensure we maintain a healthy balance sheet. We are pleased toappointEquirusCapital for the bank’s first fundraise as we look to onboard investors who believe in the vision of providing digital focussed financial services to the small and underserved segments.”
He added, “We are planning to raise INR 100 Crores from institutional investors, private equity investors, fintechs and family offices. The balance sheet has a lot of flexibility in terms of the capital structures to be adopted, hence, both equity and debt instruments are being considered. The funds will be used to support our digital expansion through exclusive partnerships with fintech and physical expansion plans in the states of Delhi, Uttar Pradesh, Uttarakhand, and Madhya Pradesh.”
Donald D’Souza, Managing Director and Co-Head at Investment Bank, Equirus Capital, “We are delighted to partner with Shivalik Small Finance Bank to assist them in executing their growth plans including in their capital-raising plans. We look forward to a long and fruitful association with the bank.”
The technology platform of Shivalik SFB is powered by Infosys Finacle. The bank has partnered with Indiagold for offering door-step delivery of gold loans, AgriTech company Ergos to provide digital credit access to farmers andAirtel Payments Bank for retail loans. The bank is in talks with a number of fintech and financial institutions for business collaboration in the area of deposits, loans and third-party products, including customer onboarding and digital payments.