SME lending platform Lendingkart has raised a fresh round of Rs. 50 crore in debt funding from Yes Bank Ltd. The new round of funding comes just two months after the fin-tech startup raised Rs 30 crore from Anicut Capital LLP.
The recently raised fund will be utilized to expand its operations to Tier 3 cities where the SMEs facing a lack of formal credit facilities, company said in a statement.
Harshvardhan Lunia, CEO and co-founder Lendingkart Technologies said, “Yes Bank is a dynamic and innovative institution with sound knowledge of the Indian financial sector while also undertaking substantial work towards promoting FinTech in the country. It’s the company’s firm belief that the relationship will prove to be mutually advantageous, complementing each other’s strength as it will lead to the drive of true financial inclusion.”
Lendingkart was founded by the ex-banker and ISB Hyderabad alumnus, Harshvardhan Lunia and former ISRO scientist, IIM Bangalore alumnus, Mukul Sachan in 2014. The startup aims to transform small business lending by providing easy access to credit for SMEs.
The company lends money from the company’s books instead of connecting borrowers with financial institutions. After the company borrows from banks and NBFCs at a specific rate, it lends to small businesses at an interest rate that ranges between 16-24%. The average loan amount for Lendingkart stands at Rs. 4-4.5 lakh while less than 2% of the loans are non-performing assets.
Till date, the company claims to disburse more than 11,000 loans to over 7,500+ SMEs present across India.
In the SME lending segment, the company competes with other players such as Capital Float, Instakash Technlogies Pvt. Ltd, Neogrowth Credit Pvt. Ltd and among others.