Sub-K

Sub-K is a digital financial services platform that delivers credit, savings, payments and insurance to underserved communities across India. Using technology and a vast agent network, it partners with banks and financial institutions to make formal financial products accessible in rural and semi-urban areas, serving millions of customers nationwide.

Core Products and Services

• Microfinance and MSME Loans: End-to-end origination, disbursement and collection of microloans and enterprise credit, tailored for rural and semi-urban borrowers.

• Savings and Deposits: Account opening, recurring and fixed deposits and doorstep banking services through agent outlets.

• Payments and Remittances: Domestic money transfers, bill payments, government-to-citizen (G2C) payments and merchant transactions.

• Insurance and Micro-Insurance: Distribution of life, health and general insurance products, often bundled with credit offerings.

• Digital Platforms: SARTHI, a multi-product fintech platform, enables seamless access to credit, insurance, gold loans, and micro-investments for individuals and MSMEs.

• Agent Network Management: Recruitment, training and support for local entrepreneurs who serve as banking correspondents, ensuring last-mile service delivery.

Business Model & Revenue Streams

• Commission Fees: Earned from partner financial institutions for origination, servicing and collection of loans, deposits, and insurance policies.

• Transaction Fees: From payments, remittances and bill payment services processed via its agent network.

• Platform and Service Fees: For digital onboarding, agent management and value-added fintech solutions.

Top Clients & Partnerships

• Banking Partners: Sub-K collaborates with 15+ major banks and NBFCs, including State Bank of India, RBL Bank, Axis Bank and Kotak Mahindra, to deliver financial products at scale.

• Insurance and Payment Partners: Works with leading insurers and payment networks to expand its product suite and reach.

• Impact Investors: Supported by BASIX, Michael & Susan Dell Foundation, Accion, Nordic Microfinance Initiative and MAJ Invest, providing both capital and strategic guidance.

• Government and Development Agencies: Engaged in G2C payment facilitation and financial literacy initiatives.

Future Outlook & Strategic Priorities

• Growth Drivers: Sub-K is focused on expanding its digital lending and microfinance portfolio, launching new products (such as housing, personal, and gold loans) and deepening its presence in Tier 2/3 cities and rural markets. The SARTHI platform is expected to drive significant adoption among MSMEs and individual borrowers.

• Risks and Headwinds: Key challenges include regulatory changes in the microfinance and payments sectors, macroeconomic volatility affecting rural demand and the need to maintain asset quality as the company scales (notably, the top three states account for 57% of AUM as of March 2024).

• Strategic Targets: Management aims to grow assets under management (AUM) to ₹1,400 crore by March 2025 and ₹2,000 crore by March 2026, while improving operating efficiency and profitability. Capital allocation is prioritized for technology upgrades, agent network expansion and product innovation.