Fintech company BankSathi secures $4 million in pre-series A round

India-based fintech company BankSathi has raised a pre-series A funding of USD 4 million to expand into new geographies and invest in expanding its agent network.

The funds received will be used to invest and employ skilled employees who will cover the entire company’s operations. Furthermore, the process of developing new products and technologies will be accelerated, as the organization will also invest in resources and research tools.

The funding has been provided by several businesses, the former being Kotak Securities, Lets Venture, We Founder Circle, IPV (Infection Point Ventures) and Hem Securities.

According to the company’s CEO, when it comes to financial services, many users rely on their networks for recommendations or ideas. BankSathi’s distribution network provides its customers with services that are safe, fast and reliable. Through its financial advisors, the company was able to help increase economic penetration in their country. This funding will give BankSathi the opportunity to expand its product vision and demand and technology. In addition, it will allow the network deployment to be used at a faster and more efficient pace.

BankShati’s expansion strategy

BankShati is located in India and is a digital advisory platform that offers its customers financial advisors. This gives customers and financial institutions the opportunity to develop their digital presence in the industry and start selling financial products and services online.

The social commerce fintech platform raised USD 485,000 (INR 40 million) in funding back in late 2021. According to the press release, the funders were Hem Angels and Reputed Entrepreneurs, who invested in the company with the aim of providing people with career opportunities as a financial advisor, while the income is flexible and more secure.

Earlier that year, BankSathi announced the raising of USD 200 thousand as its seed round from angel investors. This fund was used to develop their products, such as the algorithm that recommends financial products to advisors based on the customer’s profile and previous transactions. This service helps customers and advisors receive recommendations based on their product preferences.

Some other services to their customers are a range of credit cards, zero balance savings accounts that allow users to earn more from their savings, personal loans, home loans or business loans, demat and merchant accounts that can be opened quickly and securely online, as well as EMI cards, which allow users to to convert their purchases into electronic money institutions (EMIs).

The expansion to several other geographies will help with the company’s growth process, as well as present their services to new customers. Currently BankSathi’s users can start their own business without investment as the company follows a zero investment policy. Furthermore, they can have the payout credited to their personal account quickly and securely, while being assisted by a training team.