Fintech firm BankSathi raises $4 million as pre-series A round
The company has also received funding from Recur Club, Liquiloans, Sunil Singhania (Abakkus), Kunal Shah (CRED), Dr Ritesh Malik (Innov8), Kailash Biyani (Asian Markets), Mukul Rastogi & Bhaswat Agarwal (ClassPlus), Varun Alagh ( MamaEarth ), Sameer Rastogi (India Juris), Manish Dabkara (EKI Energy) and Mukund Modi (MS Fincap).
The funds will be used to invest in high caliber employees across all of the company’s businesses and to accelerate the development of new products and technology. In addition, the organization will invest resources in expanding both the agent network and geographical reach to new regions.
BankSathi is a social commerce fintech platform to empower consumers’ financial lives by providing access to right financial products to last mile users. It uses prioritized algorithms to recommend financial products to advisors based on the customer’s profile and past transactions. This helps both customers and advisors to get recommendations for the best products.
Jitendra Dhaka, founder and CEO said in a statement: “People generally rely on their networks for recommendations, especially when it comes to significant financial services. As a result, our distribution network of vetted agents provides much-needed security to customers. We are committed to to make a major contribution in the Prime Minister’s mission ‘Develop India by 2047’ by increasing financial penetration through our technology-enabled financial advisors. With this funding, we will be able to expand our product, technology and distribution network at a faster pace.”
Jaideep Hansraj, MD & CEO, Kotak Securities Limited said in a statement, “Today, small and medium financial advisors/micro-entrepreneurs are not able to work directly with financial institutions. BankSathi enables these micro-entrepreneurs to sell and earn extra income by selling financial products online and making themselves financially independent and educated.”
BankSathi uses its network of agents to provide recommendations for right financial products to its customers in Tier 2, Tier 3 cities and remote locations. The distribution technique used by the firm provides product propositions in several financial categories including bank accounts, credit cards, loans, demat accounts and insurance. The lack of trust that exists in India is the primary barrier to the country’s adoption of financial products.
