India-based digital lending platform Lendingkart Finance has raised INR 70 crores (US$10.5 million) in equity funding from Singapore-based Sistema Asia Fund.
Existing investors Bertelsmann India Investment, Mayfield India, Saama Capital, India Quotient and Darrin Capital Management also participated in this round.
Lendingkart will use the newly-raised financing to increase its loan book and strengthen its technology and analytics capabilities. The startup will also use part of the funds to expand its presence in underserved markets in India.
Founded in 2014 by Harshvardhan Lunia (pictured above) and Mukul Sachan, Lendingkart’s platform relies on Big Data analytics to help lenders evaluate a borrower’s credit worthiness.
Over 4,000 data variables are assessed to determine the financial health, comparative market performance, social reliability and compliance to statutory requirements for determining the credit worthiness of borrowers.
Once the evaluation process is completed, the loan amount is disbursed to the deserving borrower within 72 hours from the time of application.
“It is heartening to witness the exponential pace at which Lendingkart Technologies is scaling and solving a fundamental problem that ails small businesses in the country,” said Dhruv Kapoor, Managing Director, Sistema Asia Fund Advisory.
“Lendingkart’s data science driven approach and contactless distribution model is the answer to the needs of the SME sector overlooked by traditional banking infrastructure.”
In June this year, Lendingkart raised US$7.8 million (INR 50 crore) in debt funding from YES Bank, India’s 4th largest private sector bank. It used the funds to reach SMEs operating in Tier 3 and smaller cities facing lack of formal credit facilities.
Currently, Lendingkart has extended its reach to over 720 cities in India across 29 states and 7 union territories. It claimed that over 300,000 SMEs have reached out to its platform for their credit requirement and over 10,000 SMEs have received funds.
Lendingkart has offices in Ahmedabad, Bangalore and Mumbai.
Image Credit: Lendingkart