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Lendingkart Group, a digital lending platform for small and medium enterprises (SMEs) in India, has raised INR 205 crore (US$32 million) in Series B financing round.

This round was led by Bertelsmann India Investments, with participation from Darrin Capital Management and existing investors Mayfield India, Saama Capital and India Quotient.

Of the total investment, US$20 million came in as equity and the remaining as debt.

The investment will be used to strengthen its data science capabilities, enhance its technology platform and infrastructure for improved mobile capabilities. The group also aims to tap into India’s huge underserved lending market by expanding its footprint further.

With this round, the company’s total funding raised so far has touched US$ 41 million.

Also Read: Startup that gets your business loans approved in 24 hours raises US$25M funding

Founded in 2014 by ISB Hyderabad alumnus Harshvardhan Lunia and IIM Bangalore alumnus Mukul Sachan, Lendingkart has built a technology platform to service the working capital financing needs of SMEs in India. It has developed technology tools based on Big Data analytics that facilitates lenders to evaluate borrower’s credit worthiness.

The fintech startup has partnered with leading online marketplaces and various industry and trade associations to service the financing needs of both online and offline SMEs.

Over the past two years, Lendingkart claims to have arranged loans to customers in 135 cities across 22 states, witnessing a 20 per cent month-over-month growth in loan origination.

“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 2,200 variables to assess the applicant’s credit worthiness. With funds being transferred in as less as 24 hours, credit on demand is becoming a reality,” said Sachan.