Pune/Delhi | August 14, 2025 — SMBC Asia Rising Fund—backed by Japan’s Sumitomo Mitsui Banking Corporation has acquired a 4.99% stake in Shivalik Small Finance Bank for $7 million (≈₹60 crore), valuing the bank at ₹1,200 crore.
Shivalik SFB, which transitioned from a cooperative bank, operates 79 branches with over 900,000 customers, catering to MSMEs and retail clients. The fresh capital will fund strengthened digital infrastructure, modernization of product, engineering, and operations teams, and support for the next phase of its 35–40% annual growth ambition.
Existing investors—including Accel, Quona, Lightspeed, and Sorin Investments added ₹40 crore via pro-rata participation, completing a ₹100 crore equity round.
Why This Deal Matters
- Strategic alignment: For SMBC, this marks the sixth India investment signalling strong belief in regulated Indian financial services.
- Building scale thoughtfully: Shivalik’s journey from a cooperative to India’s only small finance bank born from such a transition reflects its ambition and adaptability.
- Capital for impact: Strengthening capital adequacy from ~19% to ~24% will support Shivalik’s plans to expand loan offerings and consider M&A opportunities focused on secured lending.
With regulatory pressure rising on unsecured lending and increasing focus on rural credit, this deal reinforces Shivalik’s journey from regional player to national impact bank.
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