SRV Media
New Delhi [India], August 25: BankSathi, a pioneering fintech social commerce startup, takes pride in announcing its remarkable achievement as the third-largest credit card issuer in India with 3.6 lakh ARR. The startup has issued 3 lakh credit cards as of June 2023, a 4X increase in cards over the previous fiscal year.
India has 8.5 crore active credit cards and 4 crore credit card holders. The credit card industry is expected to grow at a 25% CAGR and cross 20cr credit cards by 2026. This rapid growth in the number of credit cards is being driven by a significant customer base consisting of young individuals entering the workforce or running their own businesses. Card applications have been significantly boosted by the growing popularity of UPI payments made with credit cards, as well as by widespread digital usage and end-to-end digital sourcing from application to verification. Digilocker, Aadhar, and digital PAN verification services, among others, have all been crucial in raising these numbers.
Jitendra Dhaka, co-founder at BankSathi, states, “We empower consumers by providing the right financial products with access to last-mile users, especially in Tier II and Tier III cities. We have developed a unique platform that leverages algorithms and data analytics to provide personalized recommendations that identify the most relevant financial products. To meet the needs of customers, we equipped financial advisors with cutting-edge digital tools, training, and knowledge to offer timely and accurate advice and a seamless online buying experience. A few years ago, the credit card issuance time period was 20 days, but after current digital adoption, customers can get approval of credit cards within 30 minutes, helping us issue more cards. We are thrilled to have achieved this significant milestone as India’s third-largest credit card issuer. With increasing digitization and the proliferation of “India Stack,” the financial distribution industry will expand significantly in the next few years across lending, insurance, credit cards, etc. As a consumer-focused platform, we want to be a part of this evolution.”The company said it had transformed its business strategy, focusing strongly on the margins. The platform has achieved 25% month-on-month growth over the last 2 years and achieved revenue run rate of 100 Cr with profitability. Currently, the company plans to close this financial year with 6 lakh credit card ARR to become the largest credit card issuer in India.
About BankSathi: It is India’s fastest-growing financial products distributor. At present, it has 1.5 million advisors present in 18000 pin codes across the country. Banksathi has raised $4 million in funding from Kotak Securities, Lets Venture, We Founder Circle, Hem Securities, IPV (Inflection Point Ventures), JITO, and marquee HNIs Sunil Singhania (Abakkus invest), Kunal Shal (CRED), Dr Ritesh Malik (Innov8), Kailash Biy(Asian Markets), Mukul Rastogi & Bhaswat Agarwal (ClassPlus), Varun Alagh (MamaEarth), Manish Dabkara (EKI Energy), etc.
BankSathi currently works with more than 60 different financial institutions, including the largest banks in India: HDFC Bank, Axis Bank, IDFC First, SBI, Kotak Mahindra Bank, and Bank of Baroda. Since its introduction, the app has been used by more than one million advisors and 30 lakh customers, and the firm that runs it claims that its agents have earned more than 10 million USD as a result of using it.
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