Fintech Startup Jaikisan Raises USD 50mn Series B Funding Through Debt And Equity

By Jaskirat Singh    -   August 2, 2022

Rural agri focussed fintech startup Jai Kisan raises series B funding of USD 50mn from various VCs in a mix of debt and equity.

Date of Announcement: Friday, July 29, 2022

Investee Startup/Company: Jai Kisan

Funding: $50 Million (₹399 Crores) through a mix of debt and equity

Round of Funding: Series B

Investors Participated: Funding was led by new investors, GMO Venture Partners, Yara Growth Ventures and DG Daiwa Ventures. Existing investors including Blume Ventures, Arkam Ventures, Mirae Asset and Snow Leopard Ventures also participated in the round. The debt funding was brought in by Northern Arc, Alteria and publicly-listed MAS Financial.

Valuation: ~$240 Million

About Jai Kisan: Arjun Ahluwalia and Adriel Maniego (both alumnus of Texas A&M-University) founded Jai Kisan in 2017 with the goal of developing the first seamless and full-stack banking experience for rural residents. It is a lending platform that uses technology to provide credit solutions to farmers for equipment used in agriculture and allied activities and integrates BNPL facilities in the rural structure. Company offers point-of-sale (POS) credit for transactions in online and offline rural commerce environments to individuals and rural businesses.

Business ModelJai Kisan offers a totally digital Buy Now, Pay Later service that enables rural enterprises to offer formal credit to their clients, enabling them to purchase high-quality goods. It caters to various industries including dairy, poultry, fishery, agriculture and manufacturing. Company offers point-of-sale (POS) credit for transactions in online and offline rural commerce environments to individuals and rural businesses. Company launched its application “Bharat Khata” to offer credit and providing supply chain finance. Company recorded revenue of Rs 4.96 crore in FY21 with net loss of Rs 3.36 cr during year ended March 2021 which is in control as per BNPL industry peer to peer comparision.

From Founders' Desk: Arjun Ahluwalia, co-founder and chief executive officer, Jai Kisan said, "We will continue to build on the back of this support and create impact in this under-served space, leveraging creative new age solutions and keeping customer experience at the core of our beliefs."

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

Purpose of Funding:

  • Product diversification through widening the portfolio;
  • Enhancing customer satisfaction;
  • Boost data science and engineering capabilities;
  • Talent acquisition and team building

Through this funding, Jai Kisan looks to enhance its footprints and help develop rural credit framework through better supply-chain, credit and BNPL channels. Company faces competition from other companies in the industry SarvaGram, BRIDGE, FarMart, Merchant, Stronghold, AgilerMe, Harvest Profit, Apollo Agriculture however, it establishes it niche with a specific focus on rural India.

- Jaskirat Singh