The Indian Wire » Startups » Lendingkart Finance secures ₹300 crores in debt funding
Startups

Lendingkart Finance secures ₹300 crores in debt funding

Ahmedabad-based Lendingkart Finance, RBI registered NBFC has raised ₹300 crores ($43.7 million) in non-convertible debentures. Aditya Birla Sun Life AMC has invested ₹150 crores, while the rest came from another mutual fund entity, whose identity remains undisclosed.

The funds raised will be used towards growing the loan book and financing more MSMEs across the country.

Lendingkart, a digital lending platform provides loans for SMEs in India to grow their business. It was founded by ex-banker Harshvardhan Lunia, along with former ISRO scientist Mukul Sachan in 2014.

The platform aims to transform small business lending by making it more flexible and suitable for small businesses. It uses technology and analytics tools, to access the creditworthiness of the small businesses quickly and accurately by analyzing thousands of data points across various data sources.

Lendingkart claims to approve the loans within 3 days after the completion of the evaluation process. It has disbursed over 20,000 loans to over 12,500 small businesses across more than 950 cities in the country. The average ticket size of loans disbursed is around ₹5-6 lakhs.

Lendingkart is planning to disburse 30,000 loans in the year 2018-19, amounting to ₹2,000 crores. It also hopes to add another 20,000 MSMEs on the platform by the end of this fiscal.

The startup had previously raised ₹25 crores in debt funding from State Bank of India.

Other startups competing with Lendingkart in the digital lending space include LenDenClub, Monexo Fintech, Faircent, Finzy, along with many others.

In related news, Indian e-commerce giant Flipkart is looking to venture into digital lending, and digital payments platform Mobikwik has also started offering loans on its platform.

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