Suryoday Small Finance Bank, a scheduled commercial bank, has raised ₹248 crore in equity funding through private placement, which the company intends to use for expansion plans.
The funding saw participation by three promoters, two new investors, and 13 existing investors.
DEG (a development finance institution and a subsidiary of German KfW Group) and Kotak Mahindra Life Insurance Company were the new investors in this round.
“In this financial year, the focus will be to deliver not just excellent customer experience but also create delight or wow factors for all the segments that we cater to through technological initiatives and innovations.
“This growth capital comes in just as we start the new financial year, and provides us with a strong backing to pursue our business plans,” said R Baskar Babu, MD and CEO of Suryoday Small Finance Bank.
The bank, which has a customer base of 10 lakh, plans to foray into Uttar Pradesh, and will soon open a branch in Varanasi.
It also plans to expand its branch network in Gujarat, Madhya Pradesh, Karnataka, and Delhi.
The bank entered Delhi by opening two branches in the city a few days ago, said Babu.
The company is backed by marquee investors such as IFC, IDFC Bank, TVS Capital, Shriram Growth Fund, HDFC Holdings, HDFC Life, ASK Pravi Group, Developing World Markets, Gaja Capital, and Evolvence India Fund II.
The bank now has 20 institutional investors, including development funds and private equity funds.
Suryoday Small Finance Bank, which started operations in January 2017, has a network of more than 380 branches and doorstep-centres, with a portfolio of ₹2,900 crore.
Suryoday Small Finance Bank, which was the first from Maharashtra to obtain an SFB licence from the RBI, was looking at raising funds through an Initial Public Offering (IPO) by October-December quarter.