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Ahmedabad-based online financing company, Lendingkart, has raised $10 Mn (about INR 63 Cr) funding from venture capital funds Saama Capital and Mayfield Fund. Besides, Ashvin Chadha, ex-partner of Indian Equity Partners Advisors and Shailesh Mehta, US-based financial technology professional who also runs California-based venture fund GraniteHill Fund contributed $3 Mn in the total funds raised.
With the infused capital Lendingkart aims at increasing the loan disbursement by six times per month, build a team for ecommerce lending & analytics and to expand its operations.
Founded in 2014 by Harshvardhan Lunia and Mukun Sachan, Lendingkart is dedicated to help entrepreneurs and small & medium businesses owners with short term working capital loans. The company claims to disburse around 70 short term loans every month charging 1.5 to 2 percent interest per month.
Lendingkart has partnered with ecommerce marketplaces like Flipkart, Snapdeal and fashion etailer Jabong to provide working capital loans to their sellers for optimum growth.
Harshvardhan Lunia, CEO, LendingKart, said, “We have identified the pain area where new small businesses, SMEs and startups are many a times unorganised and have hardly maintained their books of account, thus they do not get loans from conventional channels like bank or NBFCs.”
How Does Lendingkart Work?
# Lendingkart works differently from banks and other NBFC’s by focusing on vendor’s current year cash flows and business growth.
# The company has a complete online application process with no collaterals and no physical verification by staff members.
# The online financing company uses analytics and big data scoring to evaluate client’s business and gives a short term working capital loans ranging from $940 to $63000 (INR60,000 to 40 lakhs) based on an online form filled by the borrower.
# The loan amount is disbursed through affiliated lenders, or lending partners within a short span of three days.
The company presently has offices in Ahmedabad and Bangalore with its operations running pan India. Till date, the company has offered its services in 40 cities and 16 states in India.
Lendingkart has raised $ 9.5 Mn since inception. It had earlier raised a seed funding from India Quotient, Ashish Goenka and other private equity investors. Apart from Lendingkart, financial technology startup IndiaLends raised undisclosed amount in its pre-Series A round of funding and credit management service provider CreditMantri raised $2.5 Mn in Series A round.
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