Shivalik Small Finance Bank (SSFB) has raised Rs 1 billion in fresh equity funding, led by SMBC Asia Rising Fund, the corporate venture capital arm of Japan’s Sumitomo Mitsui Banking Corporation (SMBC). Existing investors Accel, Quona Capital, Lightspeed and Sorin Investments also participated in the round.

The bank said the infusion will be used to strengthen its technology infrastructure, expand its product, engineering and operations teams, and scale its banking-as-a-service (BaaS) platform. SSFB aims to deepen its reach among India’s underserved MSME and retail segments, particularly in semi-urban and rural areas.

Anshul Swami, Managing Director and CEO of SSFB, described the deal as a strategic step towards building a “digital-first retail bank” with BaaS as a key growth pillar. “Our technology stack, depth of banking knowledge, and commitment to partners will continue to allow us to deliver scalable solutions that resonate with our core audience,” he said.

The partnership with SMBC is expected to support Shivalik’s digital-led growth strategy and reinforce its role in expanding financial access across the country.