Jai Kisan Raises $30 Million to Empower Rural India Fintech

Jai Kisan Secures $30 Million to Expand Rural Financial Services in India

Jai Kisan, an Indian startup focused on delivering financial services to the underserved rural population, announced on Monday a successful fundraising round of $30 million. This new capital injection will be utilized to facilitate business expansion and broaden its reach within India.

Addressing the Credit Gap in Rural India

A significant portion of India’s population resides in rural areas, yet access to traditional banking and credit remains limited. Many individuals lack established credit scores, and their primary occupations, such as farming, are often not recognized as legitimate businesses by conventional lenders.

This absence of a documented credit history places rural residents in a higher-risk category for loan applications. Consequently, access to capital is restricted, hindering economic growth and opportunity.

Furthermore, funds obtained through informal channels are frequently allocated to non-productive expenditures, resulting in elevated interest rates and increased loan defaults.

Bharat Khata: A New Approach to Rural Lending

Jai Kisan, established three years ago and headquartered in Mumbai, is pioneering a novel approach by treating farmers and similar professionals as businesses rather than individual consumers.

The company has developed Bharat Khata, a proprietary system designed to provide individuals and businesses with access to more affordable financing options.

This system ensures that borrowed funds are specifically directed towards essential agricultural inputs, equipment, and other income-generating activities, thereby fostering rural commerce.

The Importance of Financial Inclusion

Arjun Ahluwalia, co-founder and CEO of Jai Kisan, emphasized the critical role of financial services in supporting rural economies. He stated that access to credit is not merely a supplementary benefit, but rather an expectation for Indian consumers.

“The ability to make purchases with deferred payment is a common practice in India,” Ahluwalia explained in an interview with TechCrunch. “Credit is anticipated by the Indian customer; it isn’t an added value.”

He further noted that increased access to formal financing benefits not only individual customers but also the entire ecosystem surrounding them, citing the success of Bajaj Finance and Xiaomi as examples.

Growth and Monetization of Bharat Khata

Since its launch in April of the previous year, the Bharat Khata service has processed over $380 million in annualized Gross Transaction Value (GTV) across more than 25,000 retail locations.

Jai Kisan has directly financed over 15% of these transactions, demonstrating the platform’s monetization potential and the quality of commerce it facilitates.

The startup reports a business growth exceeding 50% within a three-month period, highlighting its efficient capital deployment and focus on core customer credit needs.

Expansion Plans and Investment Details

Currently operating in eight states across South India, Jai Kisan intends to expand its operations nationwide and increase its workforce.

The recently secured $30 million Series A funding round was led by Mirae Asset, Syngenta Ventures, and existing investors including Blume, Arkam Ventures, NABVENTURES, Prophetic Ventures, and Better Capital.

Additionally, the company secured an undisclosed amount of debt financing from Blacksoil, Stride Ventures, and Trifecta Capital.

Investor Confidence and Future Outlook

Ashish Dave, CEO of India Venture Investments at Mirae Asset, expressed confidence in Jai Kisan’s potential to disrupt the rural financing sector. He lauded the company’s growth, asset quality, and expanding footprint.

“Mirae Asset consistently supports companies poised to become industry leaders,” Dave stated. “We believe Jai Kisan is on track to achieve this in the realm of rural finance.”

Shifting Towards Direct Lending

Traditionally, Jai Kisan has relied on partnerships with banks and financial institutions to provide credit to businesses. However, the startup now plans to directly finance 20% of all loans, necessitating the inclusion of debt financing in the current funding round.