The private equity fund Maj Invest Financial Inclusion Fund II completes its seventh and final investment by acquiring shares in BASIX Sub-K iTransactions Ltd. (Sub-K). Established in 2010, Sub-K carries out basic banking, payment and loan management services for microfinance banks through its network of agents/business correspondent outlets (BCOs) and a fintech platform.
Sub-K has an asset under management of USD 157.5m consisting of loans with ticket sizes between USD 290–360, spread across 443,000 active borrowers and 270 branches in eight states of India. In addition, its banking and payment services have an outreach of 2.3 million customers via 12,000 BCOs in 26 states.
Sub-K's business model uses a tech platform as a low-cost shop outlet for financial inclusion products and banking services through BCOs in rural and semi urban areas where other institutions cannot reach without significant costs. Sub-K aims to emerge as a leading fintech company, servicing clients below the middle-income group.
Also see article in Economic India Times: Sub-K raises Rs 75 crore funding from Denmark's Maj Invest