BASIX Sub-K iTransactions, a company that offers a mobile payments platform to rural masses has raised an undisclosed amount from Michael and Susan Dell Foundation, reports VC Circle. The report mentions that the funding was done sometime in 2011 and the investment will help the company in enrolling more than 2 million customers and for financing its expansion plans, according to a statement from the Michael & Susan Dell foundation.
As per its website, Sub-K offers residents of rural, urban and semi-urban areas a mobile technology based transactional platform for access to digitized services. Services include Banking Services, Savings, NREGA and other Government Payments, Money Transfers, Utility Payments, Prepaid Mobile Top-ups and others, which according to the company are enabled through a network of Basic Convenience Outlets (BCO) operated by company agents. Sub-K aims to work towards financial inclusion by appointing service providers / banks at one end and BCOs at the other.
Sub-K identifies and appoints sub-agents or BCOs in remote villages, which are provided with a mobile phone and printing+authentication device that directly interacts with a server in the Bank and approve transactions for customers using a patented process. Each customer transaction is recorded at the bank and a proper receipt is issued on the spot. The BCOs are connected to Banks and open no-frills accounts for the users free of charge for depositing, saving and withdrawing cash. For each service transaction the sub-agent is also given a small commission, to sustain the eco-system.
As of August 2011, the company claims to have set up a network of 522 BCOs servicing 75,000+ customers in 7 districts across 4 States and 3 partner banks. It plans to scale up to 2000+ BCOs servicing over 20 lakh customers across 8 States with 6 partner banks before March 2012.