Hyderabad based BASIX Sub-K iTransactions Ltd, a technology company focused on financial inclusion, has raised nearly $5.4 million (Rs 35 crore) in funding from global nonprofit and financial inclusion firm Accion and Nordic Microfinance Initiative (NMI), among others, it said in a statement.
NMI is a public-private partnership owned by the Norwegian and Danish governmental funds for developing countries (Norfund and IFU).
BASIX Sub-K, the subsidiary of BASIX Social Enterprise Group, will use a sizeable amount of the funds for business growth by investing in the expansion of its agent banking network and credit facilitation for micro and small businesses, it said in a statement on Wednesday.
Besides, a part of the financing will also be dedicated to strengthening its IT platform that would help the company position itself as a preferred fintech as well as distribution partner for banks and financial institutions.
Intellecap served as the investment banker for the deal.
“Accion and NMI as well as our early investor Michael & Susan Dell Foundation share our vision of a financially included society. Building upon Basix’s two decades of cutting edge work in financial inclusion, we will be able to continue to invest in innovations and increase our reach multi-fold, thanks to this investment,” Sasidhar Thumuluri, MD & CEO of Basix Sub-K, said.
“Sub-K’s understanding of client needs, network of agents, and bank partnerships help address a long-standing challenge of providing rural families in India with the financial services they need to build better lives,” added Michael Schlein, President and CEO of Accion.
Incorporated in 2010, Basix Sub-K started with a vision to provide financial access to the unbanked population by leveraging technology. It currently offers banking services, savings, NREGA and other government payments, money transfers, utility payments, and prepaid mobile top-ups through a network of basic convenience outlets.
As of February 2018, Basix Sub-K is operational in 23 states of India and manages a loan portfolio of Rs 6.66 billion for various banks, it said in the statement. It has deployed as many as 13,000 agents or customer service providers (CSPs) to interface with customers. The company has partnered with over 14 private and public banks and claims to serve a customer base of 1.8 million with a bouquet of financial services.
“This new capital infusion from Accion and NMI is a testament to Sub-K’s promise as a transformative provider of diversified financial services to low-income families across the country. We are thrilled to be a partner in Sub-K’s evolution and continued growth,” said Santhosh Ramdoss, Director – India Programs, Michael & Susan Dell Foundation.
Initial investments in Sub-K were made by promoters and BASIX Limited. These funds were deployed in building the technology platform, ViTranSP, according to its website. In 2012, Michael and Susal Dell Foundation invested an undisclosed sum in the company to fund its expansion plans.
Others startups to recently raise funding in the fintech space include Avail Finance, a Bengaluru-based online lending startup, that raised an undisclosed amount of funding led by Matrix Partners India and a cluster of individual investors. In January, Aye Finance secured Rs 40 crore ($6.3 million) as term loan from IFMR Capital, while OptaCredit Fintech, a digital lending start-up focusing on white-collar salaried workers, secured a credit line of $4 million from DMI Finance Pvt. Ltd.
The same month, Lendingkart Finance raised $4.7 million (Rs 30 crore) in non-convertible debentures from Nederlandse Financierings-Maltschappij voor Ontwikkelingslanden N.V. (FMO), a Dutch development bank that invests in growth and frontier markets.