Rural fintech firm Jai Kisan raises $50mn as debt, equity in funding round

Startup says it will use the financing to expand product suite and improve customer experience

Jai Kisan, a startup providing financial services in rural India, has raised $50 million (Rs 390 crore) in a combination of equity and debt in an ongoing funding round.

New investors GMO Venture Partners, Yara Growth Ventures and DG Daiwa Ventures; existing investors Blume, Arkam Ventures, Mirae Asset, Snow Leopard Ventures, and others are part of the Series B funding round.

Northern Arc, Alteria and MAS Financial contributed to the debt raise. Jai Kisan will use the funds to expand its product suite and improve customer experience.

"'We were immediately struck by the opportunity that Jai Kisan has to help enable better financing to rural Indians,” said George Roche of Yara Growth Ventures.

"Better credit access can help micro, small, and medium enterprises grow their businesses while helping growers afford products to improve their yield and quality," said Erkki Aaltonen, managing director of Yara Growth Ventures.

Jai Kisan, which has Arjun Ahluwalia and Adriel Maniego as cofounders, said it has implemented fully digital, low-cost farmer financing at point-of-sale that grants loans in 10 minutes.

“We will continue to build on the back of this support and create impact in this underserved space, leveraging creative new age solutions and keeping customer experience at the core of our beliefs,” said Ahluwalia, chief executive officer of Jai Kisan.

Jai Kisan said its roadmap includes digitizing savings, insurance, and payment experience for its users. The company’s app, Bharat Khata, has recorded 400 per cent growth in customers in three months.

Veda Corporate Advisors and Investec India acted as financial advisors to Jai Kisan for the fundraising.