Less than two months after securing US$7.8 million (INR 50 crore) in debt funding from YES Bank, Lendingkart Finance, a digital lending platform for SMEs in India, has raised US$10 million (INR 67 crore) in debt funding from Kotak Mahindra Bank, Aditya Birla Financial Services and several other unknown financial institutions.
As the company expands its reach to over 700 cities across the country, these funds will come in handy to re-stock the loan book, allowing it to widen its scope to SMEs country-wide.
“We 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,” said Harshvardhan Lunia, CEO and Co-founder of Lendingkart.
As of today, Lendingkart claims to have disbursed over 12,000 loans to more than 9,500 SMEs across 23 diverse sectors.
Founded in 2014 by ISB Hyderabad alumnus Lunia and IIM Bangalore alumnus Mukul Sachan, Lendingkart has built a technology platform to service the working capital financing needs of SMEs in India.
Lendingkart Finance, a wholly owned subsidiary of Lendingkart Group, has developed technology tools based on Big Data analytics that facilitate lenders to evaluate borrower’s credit worthiness. Over 5,000 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, loan amount is disbursed to the deserving borrower within 72 hours from the time of application.
Lendingkart Finance has expanded its operations pan India and is present in over 700 cities across 29 states and seven Union Territories, offering quick and easy collateral-free loans with minimal paperwork.
A year ago, Lendingkart raised US$32 million in Series B financing, led by Bertelsmann India Investments, with participation from Darrin Capital Management and existing investors Mayfield India, Saama Capital and India Quotient.