Mumbai-based fintech startup Jai Kisan is making a significant change in the rural sector where commercial banks have no concrete presence. The startup works with the motive to deliver financial services to a community that survives on agriculture. The majority of lenders don’t consider agriculture as a business. And, majority of farmers are even aware of the term ‘credit score’. Moreover, due to a lack of credit history, banks put such loans under the ‘risk category’. For the past three years, Jai Kisan has been trying to address this by treating farmers and other similar professionals as a business than a consumer.
The startup has developed a system called ‘Bharat Khata’ for this. A digital ledger and smart business solution for rural businesses, it was launched in April 2020. It provides simple financial aid to individuals and businesses. The money they raise will be used for agricultural purposes, equipment and other sources of income, and for carrying out rural commercial transactions.
According to Jai Kisan, financial services are a matter of survival for these communities. Almost everyone is looking for options to buy now and pay later while purchasing. ‘Credit’ is an expectation for an average Indian consumer. It is not a value-added service, says Arjun Ahluwalia, co-founder and CEO of Jai Kisan. Jai Kisan cites Bajaj Finance, which has helped many Indian businesses thrive by giving credit to customers at the time of purchase, as an instance.
According to Arjun Ahluwalia, the annual loan disbursement till March 21 was Rs 432 crore. Adriel Maniego is the co-founder of the three-year-old startup. The startup, which operates in eight southern states, is now looking to expand its presence across the country. The startup has raised $ 30 million in new funding round as part of its scale-up plans.
