Lendingkart Group, a Bangalore-based fintech startup, has raised $32 Mn in (INR 205 Cr.) in Series B round. The funding was divided into two parts viz. $20 Mn as equity and $12 Mn as debt.
The investment was led by Bertelsmann India Investments (BII), with participation from Darrin Capital Management and existing investors – Mayfield India, Saama Capital and India Quotient.
Avendus Capital was the exclusive financial advisor to this transaction. The raised funds will be utilised in strengthening its data science capabilities, enhancing its technology platform as well as infrastructure for improved mobile capabilities.
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To date, the company has raised $41 Mn (INR 260 Cr.).
The company was founded in 2014, by ex-Banker, ISB Hyderabad alumnus, Harshvardhan Lunia and ex-ISRO scientist, IIM Bangalore alumnus, Mukul Sachan. It aims to tap into India’s huge underserved lending market by expanding its footprint further across India.
Over the past two years, Lendingkart Group has arranged loans to SME’s in 135 cities across 22 states, witnessing a 20% month-over-month growth in loan origination. The company has partnered with leading online marketplaces and various industry and trade associations to service the financing needs of both online and offline SMEs.
Bertelsmann Indian Investments, Managing Director, Pankaj Makkar believes that lending is a large market which will see a lot of innovation. “Lendingkart is a strong example of such innovation where technology and data can provide monetary access to the remote corners of India,” he added.
“Customer is at the core of what we do. We believe in providing simple, instant and flexible financing solutions to our borrowers. Using web and smartphones, customers can apply for a loan at their convenience. Our proprietary algorithms use over 2200 variables to assess the applicant’s creditworthiness. With funds being transferred in as less as 24 hours, credit on demand is becoming a reality”, said Lendingkart Group Co-Founder & COO, Mukul Sachan.
Other portals in this space include Quikrupee, SMEcorner, Innoviti, Biz2credit, smehelpline, and smegetmoney.