Ahmedabad-based fintech startup Lendingkart Group has raised $10 Mn (INR 67 Cr) debt funding from Aditya Birla Financial Services, Kotak Mahindra Bank, Tata Capital, and a few other undisclosed investors.
The funding was secured by Lendingkart Finance Limited, a wholly-owned NBFC subsidiary of Lendingkart Group. The debt investment will be used to expand the SME lending platform’s presence to more than 700 cities around the country.
Commenting on the development, Lendingkart co-founder and CEO Harshvardhan Lunia said, “ All of us recognise 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.”
Lendingkart: Bringing SMEs One Step Closer To Financial Inclusion
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.
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.”
With offices in Ahmedabad, Bengaluru and Mumbai, Lendingkart has disbursed more than 12,000 loans to over 9,500 SMEs across 23 diverse sectors. The fintech startup uses proprietary technology tools based on machine learning algorithms and big data analytics to determine a borrower’s client’s creditworthiness. At present, the company provides short-term working capital loans ranging from $740 to $14.8K (INR 50K to 10 Lakhs).