Funding

Lendingkart raises another round of debt funding to expand to 700 cities

Lendingkart Group, today raised $10 million debt fund from Kotak Mahindra Bank, Aditya Birla Financial Services and other financial institutions to expand its reach to over 700 cities across the country.

Lendingkart raises another round of debt funding to expand to 700 cities

The latest funding comes merely after 2 months, the company had raised $32M in Series B round financing; out of which $ 20 million was raised as equity and $ 12 million as debt. The fund was led by Bertelsmann India Investments (BII), with participation from Darrin Capital Management and existing investors – Mayfield India, Saama Capital and India Quotient.

These funds will come in handy to re-stock the loan book, allowing them to widen its scope to SMEs country-wide.

Commenting on the development, Harshvardhan Lunia, CEO and Co-founder, Lendingkart Technologies said “All of us recognize that SMEs are the backbone of the economy and if India is to continue to witness high growth, then supporting them is non-negotiable. While the funds from this round will be used to replenish our loan book and widen our range across the country, we are confident that our relationship with these companies will help us collectively work towards empowering SMEs through seamless availability of working capital.”

Founded in 2014 by ex-banker Harshvardhan Lunia and former ISRO scientist Mukul Sachan, Lendingkart is an instant working capital finance platform that provides SMEs with easy access to credit. At present, the company focuses on providing short-term loans with small-ticket sizes. As of today, Lendingkart Finance has disbursed over 12000 loans to more than 9500 SMEs across 23 diverse sectors.

Lendingkart Finance uses sophisticated in-house technology tools based on big data analytics and machine learning algorithms to evaluate its client’s creditworthiness. About 5,000 data variables are assessed to determine factors like financial health, comparative market performance, social reliability & compliance. Once the evaluation process is completed, the loan amount is disbursed to the deserving borrower within 72 hours from the time of application.

Speaking about Lendingkart’s niche business model, Manish Kothari, Senior EVP & Business Head, Corporate Banking, Kotak Mahindra Bank, added, “We, at Kotak Mahindra, believe that each startup business has its own unique set of requirements linked to their business model and hence, understanding the nature of business and structuring the solution around it is essential. We are excited to work with Lendingkart Finance since we believe they have a unique and efficient proposition to finance customers – largely in a space which is not as effectively addressed by most banks.”

Lendingkart Finance has expanded its operations pan India, offering quick and easy collateral-free loans with minimal paperwork. Till date, over 250,000 SMEs have reached out to Lendingkart Finance for their credit requirement. In May 2017, the firm also announced that it expects a growth of 300% by end of FY18.

You Might Also Like

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>