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

Shivalik Small Finance Bank (SSFB) has successfully raised ₹100 crore in equity, led by the SMBC Asia Rising Fund, to enhance its digital-first banking services, particularly for MSMEs and underserved markets

Originally launched as Shivalik Mercantile Co-operative Bank in 1997, the bank transitioned into a Small Finance Bank in 2021, becoming the first urban cooperative bank in India to do so under the Reserve Bank of India's voluntary transition scheme

The fresh funding will be used to strengthen SSFB's technology stack, expand its workforce, and scale its Banking-as-a-Service (BaaS) offerings, which will support seamless partner integrations for various banking services

SMBC’s investment in SSFB reflects a strategic effort to support India’s financial inclusion through digital banking, leveraging Shivalik’s technology and partnerships to offer scalable financial solutions

Shivalik combines traditional banking trust with advanced technology, operating on Infosys Finacle’s Core and Digital Banking Suite to provide cloud-native experiences It serves over 9 lakh customers across 79 branches in 11 states.

The bank's product range includes essential financial services such as savings accounts, fixed deposits, gold loans, overdrafts, and digital payments, with integrations with major insurance partners

Shivalik aims to address the challenges faced by the MSME sector, which contributes significantly to India’s GDP but struggles with access to formal credit, especially in semi-urban and rural areas

By focusing on BaaS, Shivalik intends to collaborate with fintechs and platforms to offer banking infrastructure as a service, enhancing its reach and impact in the financial sector

The bank’s strategic growth plans and digital-first approach position it as a key player in India’s financial inclusion narrative, aiming to serve MSMEs and retail customers effectively

CEO Anshul Swami emphasizes the bank's mission to provide better, faster, and seamless services to Bharat’s MSMEs and retail customers, driving financial inclusion and innovation