Digital lending platform Lendingkart Finance Limited has raised $10 million (INR 67 crores) debt fund from Kotak Mahindra Bank, Aditya Birla Financial Services and other few undisclosed investors.
Lendingkart will be used to grow its lending program to small and medium enterprises (SMEs) and widen its pan-India presence. The company has expanded its reach to over 700 cities across the country, these funds will come in handy to re-stock the loan book. Over time Lendingkart Finance has disbursed over 12,000 loans to more than 9,500 SMEs across 23 diverse sectors.
Earlier, the startup had raised around Rs 165.4 crore ($26 million) in equity funding from investors including Bertelsmann India Investment, Saama Capital, Mayfield Fund and India Quotient among others.
Commenting on the development, Lendingkart co-founder and CEO Harshvardhan Lunia 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 the seamless availability of working capital.”
The company was founded in 2014 by Harshvardhan Lunia and Mukun Sachan. Lendingkart is an online financing company dedicated to helping entrepreneurs and small businesses with Working Capital Loans. The firm also provides 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.
While many startups connect borrowers with financial institutions, Lendingkart works on the different model. It lends money from the company’s books instead. Lendingkart underwrites loans online to SMEs, lending at an annualized interest rate of 16-24%. It claims to have supported 9,500 businesses across 23 sectors.
With this, the firm looks to reach 20,000 businesses by the end of the financial year from the current 9,500 SMEs reached till date. It also plans to increase its loan disbursal to Rs 1,600 crore from current Rs 600 crore disbursed so far. Read more about Indian Startup Ecosystem.