EKO Financial Services, a mobile enabled banking correspondent for India’s largest public sector bank State Bank of India and ICICI Bank, has raised $5.5 million from US based PE fund Creation Investments Social Ventures Fund I, with Promus Equity Partners and a consortium of high net worth investors also participating. The company intends to use the fund for expanding its mobile banking platform and agent footprint, and in scaling its product footprint.
Eko offers basic banking, savings and payment services, along with merchant transactions, bill payment, and cash collection services, through its mobile enabled platform, with a network of 1,300 agents. It allows customers to open bank accounts, deposit, withdraw and remit money in real-time at agent outlets using number dialing from a mobile phone. It is also a technology provider and supports other Banking Correspondents and micro finance institutions.
Eko claims to have served 912,455 customers through its 1300 service outlets and 100 employees, and has so far processed Rs 1,000 crore ($223 million) across 2.3 million customer transactions.It has operations in Delhi-NCR, Bihar and Jharkhand, since it targets the migrant population.
The company had previously raised an undisclosed amount in funding from US based Christian charity group 4B Capital in December 2010. Before that, it had received a grant funding through the CGAP Technology Program, co-funded by the Bill and Melinda Gates Foundation.