BASIX Sub-K Raises Over $5M Equity Funding from Accion and Nordic Microfinance Initiative
Capital will be used to deepen their efforts towards financial inclusion in India
BASIX Sub-K iTransactions, a Hyderabad based company focused on financial inclusion, has raised Rs 350 million (about $5.369 million) from global nonprofit and financial inclusion pioneer Accion and Nordic Microfinance Initiative (NMI), a public-private partnership, owned by among others, the Norwegian and Danish governmental funds for developing countries (Norfund and IFU). Intellecap served as the investment banker for the deal. Founded in 2002, the Aavishkaar and Intellecap Group now manages assets of over $650 million and have directed over $1 billion of capital to entrepreneurs working on challenging problems sustainably through equity funds, venture debt vehicle, microfinance lending or investment banking intermediation.
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.
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,” says Michael Schlein, president and CEO of Accion. Accion is a global nonprofit, with a pioneering legacy in microfinance and fintech impact investing. For more than 50 years, Accion has helped tens of millions of people through its work with more than 90 partners in 40 countries.
“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,” says Arthur Sletteberg, managing director of NMI. NMI invests in microfinance institutions (MFIs) in Asia and Africa, strictly focusing on double bottom line investments, where both financial and social goals are met. NMI is a public-private partnership, owned by the Norwegian and Danish governmental funds for developing countries (Norfund and IFU) and large private sector institutions.
“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,” said Santhosh Ramdoss, director of India programs, Michael & Susan Dell Foundation. Michael & Susan Dell Foundation is dedicated to improving the lives of children living in urban poverty around the world. The foundation has committed more than $1.5 billion to global children's issues and community initiatives to date.
Founded in 2010, Basix Sub-K iTransactions Limited, is an associate company of BASIX Social Enterprise Group. It started with a vision to provide financial access to the unbanked population by leveraging technology. 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 manages a loan portfolio of Rs 6.66 billion for various banks. Sub-K has deployed as many as 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.
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