Shivalik Small Finance Bank Secures ₹100 Cr, Set to BoostDigital-First Banking

In the crowded and competitive world of Indian banking, where large public sector giants dominate and nimble fintech startups are rewriting the rules, Shivalik Small Finance Bank (SSFB) has been quietly scripting a transformation story of its own. This week, that journey took a decisive leap forward.

The Noida-headquartered bank—best known for being India’s first urban cooperative bank to successfully transition into a Small Finance Bank—announced on August 14, 2025, that it has raised ₹100 crore in fresh equity capital. The round was led by SMBC Asia Rising Fund, the corporate venture capital arm of Japan’s Sumitomo Mitsui Banking Corporation (SMBC), with continued backing from existing investors Accel, Quona Capital, Lightspeed, and Sorin Investments.

This is more than just another funding headline—it’s a bet on the future of truly inclusive, technology-led banking in India’s semi-urban and rural heartlands.

Shivalik Small Finance Bank

For those unfamiliar with Shivalik’s story, it began way back in 1997 as Shivalik Mercantile Co-operative Bank. For over two decades, it built a reputation in retail banking, particularly in the northern states. Then, in April 2021, under the Reserve Bank of India’s voluntary transition scheme, Shivalik achieved a historic milestone—becoming the first urban cooperative bank in the country to convert into a Small Finance Bank.

Since then, the bank has been on a mission to reinvent itself as a digital-first, partner-driven financial institution, with a special focus on underserved MSMEs and emerging consumer segments.

How the ₹100 Crore Will Be Put to Work

According to the bank, the fresh funds will be channelled into:

• Strengthening its technology stack to enhance digital banking capabilities.

• Expanding its workforce in key functions like product development, engineering, and operations.

• Scaling its Banking-as-a-Service (BaaS) offerings, enabling seamless partner integrations for everything from payments to lending.

“We are extremely pleased to onboard SMBC Asia Rising Fund as a strategic partner,” said Anshul Swami, Managing Director & CEO of SSFB. “At Shivalik, our growth plans have BaaS as a key pillar—powering innovative products and easy partner integrations. Our strong technology foundation and deep banking knowledge will help us deliver scalable solutions for MSMEs and retail customers across Bharat.”

SMBC’s Strategic Bet on India’s Financial Inclusion Story

For SMBC, one of Japan’s largest banking groups, this investment is part of a larger strategic push into India’s growth narrative.

“SMBC Group is deeply committed to contributing to the broad-based growth of the Indian economy,” said Rajeev Kannan, Managing Executive Officer & Head of India Division at SMBC. “Through our collaboration with Shivalik—leveraging its digital-native technology stack and strategic partnerships with high-growth platforms—we aim to advance inclusive and scalable financial solutions across India.”

A Digital-First Bank with a Strong Retail Footprint

Shivalik’s journey stands out because it combines old-school banking trust with cutting-edge technology. The bank operates on Infosys Finacle’s Core and Digital Banking Suite, enabling seamless, cloud-native experiences across mobile and web.

Its reach is steadily expanding: as of FY 2024, Shivalik serves over 9 lakh customers through 79 branches and 114 business correspondent outlets spread across 11 states. The bank employs around 800 people, boasts a business portfolio of over ₹6,000 crore, and generated ₹423 crore in revenue last fiscal year.

The bank’s product range covers the essentials—savings accounts, fixed deposits, gold loans, overdrafts, and digital payments—while also integrating with major insurance partners like Bajaj Allianz, Go Digit, Kotak Life, LIC, and New India Assurance.

Why This Matters for India’s MSME & Rural Segments

The MSME sector is the backbone of India’s economy, contributing nearly 30% to GDP and employing over 110 million people. Yet, access to formal credit remains a challenge—particularly in semi-urban and rural areas.

This is where Shivalik sees its role: using technology to remove friction from banking and leveraging partnerships to scale quickly. By doubling down on its BaaS proposition, Shivalik can plug into fintechs, marketplaces, and platforms that already have deep customer penetration—offering them banking infrastructure as a service.

With this ₹100 crore raise, Shivalik Small Finance Bank isn’t just securing capital—it’s fortifying its position in a space where legacy banks are still playing catch-up and many fintechs are struggling to navigate regulations.

Its combination of regulatory credibility, retail banking heritage, and digital-first ambition could make it a key player in India’s financial inclusion story over the next decade.

Or as CEO Anshul Swami puts it: “Our mission is simple—serve Bharat’s MSMEs and retail customers better, faster, and more seamlessly than ever before.”