Fintech company Lendingkart raises INR 50 Cr debt funding to provide business loan to MSMEs

Fintech lending firm Lendingkart has raised INR 50 Cr debt funding through NCD-MLD issue. As part of this financing, 20 Cr INR is raised from InCred Capital Financial Services Private Limited, a private NFI in India and 30 Cr INR from Yubi (formerly CredAvenue).

Commenting on the fundraising, Harshvardhan Lunia, CEO and Founder of Lendingkart said, “With the continued growth path and an outright commitment to providing working capital loans to small businesses through its platform, Lendingkart empowers MSMEs nationwide and enables them to build a successful business while bridging financial shortcomings.

The loan capital raised will be used for the purpose of onlending commercial loans to the MSME segment, thereby enabling the MSME segment to increase its business.

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“The newly acquired funds will help us reach more entrepreneurs and secure financial support for their businesses. With more and more small and medium enterprises entering the mainstream, the dream of “Aatmanirbhar Bharat” and “5 trillion economy” will come true. Lunia added.

Founded in 2014 by Harshvardhan Lunia, Lendingkart has offices in Ahmedabad, Bengaluru, Mumbai, Gurugram, and has service reach across India. The group is financed by investors such as Fullerton Financial Holding (FFH) (100% subsidiary of Singapore’s sovereign wealth fund Temasek Holdings), Bertelsmann, Mayfield India, Saama Capital, Sistema Asia, India Quotient, etc.

Lendingkart Group is a fintech start-up in the field of working capital for MSMEs. The Company has developed technological tools based on big data analysis and machine learning algorithms that allow lenders to assess borrower’s creditworthiness and provide other related services.

The company claims to have built a proprietary platform to solve the basic elements of MSME finance such as distribution, origination, underwriting, commitment and collections, and by democratizing access to this platform by providing open access to APIs across the funnel.

According to Lendingkart, since its inception, it has assessed nearly half a million applications, disbursing over 1,40,000 loans to over 1,20,000 MSMEs in over 4,000 cities and towns in all states and territories across the country. Union of India (serving 12,000 PINs), making it an NBFC with the largest geographical footprint in the country.

The fintech platform Yubi works by freeing the flow of funding between borrowers, lenders and investors. The Yubi product suite helps empower MSMEs on the one hand and grow a healthy loan portfolio for the broader banking ecosystem on the other, the company said. According to Yubi, as a debt platform for businesses, lenders, and investors, it offers a comprehensive bouquet of debt products.

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InCred, on the other hand, uses technology and data science to make lending fast, simple, and hassle-free. He believes that traditional lending methods can exclude those who need them most due to outdated, rigid and often inefficient processes. The company uses a streamlined lending process with an emphasis on meeting borrowers’ unique needs and circumstances, providing customers with a hassle-free borrowing experience.

InCred Finance, the group’s lending business, was founded in 2016 by Bhupinder Singh as a new era lending institution, focused on technology and risk analytics. Its segments include Retail Lending, Small Business Lending and Education Finance.

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