BASIX Sub-K iTransactions Ltd, a Hyderabad based fintech company, has raised Rs 35 crore from Accion and Nordic Microfinance Initiative (NMI).
Sub-K 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. Some of the amount raised 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.
Founded in 2010, Sub-K serves as a bridge between financial service providers and under-banked customers. As of February 2018, the company is operational in 23 states of India and claims to manage a loan portfolio of Rs 6.66 billion for various banks. It claims to have deployed 13,000 agents or customer service providers (CSPs) to interface with customers on the ground. The company has partnered with over 14 private and public banks and serves a customer base of 1.8 million with a bouquet of financial services.
Commenting on this deal, Sasidhar Thumuluri, MD and CEO of Basix Sub-K says, “We are very excited about this investment. 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.”
“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,” said Michael Schlein, President and CEO of Accion.
Arthur Sletteberg, Managing Director of NMI said, “We are very thrilled and excited to join the Sub-K team. NMI has high expectations for Sub-K, thanks to its strong and customer-centric concept, and highly competent management and staff.”
Santhosh Ramdoss, Director – India Programs, Michael & Susan Dell Foundation, said, “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.”