Jai Kisan Acquires Majority Stake In Kushal Finnovation, Gets NBFC License

Fintech startup Jai Kisan, which operates in rural areas, has acquired a non-banking finance company (NBFC) license. The development came after it acquired a majority stake in supply chain financing specialised NBFC Kushal Finnovation Capital.

Prior to the new license, Jai Kisan's offers were restricted to products offered by its partner banks and nbfcs via its platform; now,  it is able to directly develop and provide financial solutions to farmers and rural enterprises, as per media reports.

Jai Kisan, a technology-driven financial services platform that serves farmers, individuals, and companies in rural areas, was founded in 2017 by Ahluwalia and Adriel Maniego. 

The company has created a digital ecosystem that links corporate entities, financial institutions (banks and nbfcs), and rural intermediaries (distributors, retailers, and suppliers) to enable supply chain financing and buy-now-pay-later (BNPL) options for goods like agricultural equipment and inputs. The company claimed that it had served more than 1 lakh rural businesses and partnered with 350 corporates while assisting over 8 lakh farmers.

With this newly availed NBFC license, Jai Kisan can now offer customised financial products including loans from its portfolio. The company is now able to enter into co-lending with financial institutions, such as public sector banks in India.

Further, The company's advisory board now includes senior bankers such as former chief risk officer Arvind Kathpalia of Kotak Mahindra Bank as a senior credit risk advisor and former chief compliance officer Ravi Duvvuru of Jana Small Finance Bank as a senior advisor on governance, as per media reports.