Lendingkart Finance Raises $43.7M to Disburse Loans Worth $291M in Fiscal Year 2019

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Aditya Birla Sun Life AMC has invested $21.8 million (INR 150 Cr) in Lendingkart Finance

Lendingkart Finance will use the funds to grow its loan portfolio and fund more MSMEs

It plans to disburse 30,000 loans worth $291 million in FY 2018-19 and add 20,000 new borrowers to MSMEs

Lendingkart Finance, the NBFC arm of the Lendingkart Group, announced today (August 1) that it has raised $43.7 million (INR 300 Cr) in non-convertible debentures of Aditya Birla Sun Life AMC with another entity. Aditya Birla Sun Life AMC has invested $21.8 million (INR 150 Cr) in the company.

Founded in 2014 by former banker Harshvardhan Lunia and former ISRO scientist Mukul SachanLendingkart is an instant working capital financing platform that provides SMEs with easy access to credit and working capital.

“The freshly raised amount will be used to increase our loan portfolio and finance more MSMEs. As we expand our reach to over 1,200 cities across India, these funds will be used to expand our offerings to MSMEs nationwide,” Lunia said in a press release.

It would be the biggest debt financing round for the company to date. Lendingkart Finance also increased INR 30 Cr in non-convertible debentures of Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden NV (FMO) in January 2018.

Previous funding rounds raised by Lendingkart Group:

  • February 2018: Over $87 million in an equity financing round as part of its Series C round
  • December 2017: $3.8 million raised debt financing from India’s state-owned bank SBI
  • September 2017: Secured $10.9 million (INR 70 Cr) funding from Sistema Asia Fund as well as existing investors Bertelsmann India Investment, Mayfield India, Saama Capital and others

Lunia claimed that Lendingkart Finance had disbursed over 28,000 loans to over 21,000 MSMEs in 26 diverse sectors till date.

The startup used thousands of data points to assess factors such as the financial health, comparative market performance, social reliability and compliance of its MSME borrowers. Once the assessment process is complete, the most successful loan applicants receive their loan within 72 hours. Lendingkart has expanded its operations across India and offers quick and easy loans with minimal paperwork.

The average loan amount disbursed is INR 5-6 Lakh.

lendingkart aims to disburse 30,000 loans in the financial year 2018-2019, for a total of USD 291.8 million (INR 2,000 Cr). It expects 20,000 new MSMEs to be added to its platform in the current fiscal year.

[The development was reported by ET.]

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