Fintech company Lendingkart raises INR 50 Cr debt funding to provide on-lending to corporate loans to MSMEs

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

A comment on the collection, Harshvardhan Lunia, CEO and founder at Lendingkart said, “With the continued growth trajectory and a sheer commitment to providing working capital loans to small businesses through its platform, Lendingkart is empowering MSMEs in the country and enabling them to create a successful business while bridging the financial gaps. “

The debt capital raised will be used for on-lending of business loans to the MSME segment, thus giving the MSME segment the opportunity to expand its business.

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“The newly acquired funds will help us reach out to more entrepreneurs and secure financial support for their businesses. With more SMEs 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 funded by investors including Fullerton Financial Holding (FFH) (100% subsidiary of Singapore Sovereign Fund Temasek Holdings), Bertelsmann, Mayfield India, Saama Capital, Sistema Asia, India Quotient and others.

Lendingkart Group is a fintech start-up in the working capital area for MSMEs. The company has developed technology tools based on big data analysis and machine learning algorithms that make it easier for lenders to assess borrowers’ creditworthiness and offer other related services.

The company claims to have built a proprietary platform to address the fundamental building blocks of MSME finance such as distribution, origination, underwriting, engagement and collections, and by democratizing access to this platform by providing open access to cross-funnel APIs.

According to Lendingkart, since its inception, it has assessed nearly half a million applications, disbursed over 1,40,000 loans to more than 1,20,000 MSMEs in 4,000+ cities and towns across all states and union territories in India (serving 12,000 pin codes), making it an NBFC that has the largest geographical footprint in the country.

The fintech platform Yubi works by freeing up the flow of finance between borrowers, lenders and investors. The Yubi product suite helps empower MSMEs on the one hand, and develop a healthy loan book for the larger 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, easy and hassle-free. It believes traditional lending methods can exclude the most needy due to outdated, rigid and often inefficient processes. The company uses a simplified loan process with a sharp focus on serving borrowers’ unique needs and circumstances – and offering customers a problem-free loan experience.

InCred Finance, the lending business of the group was founded in 2016 by Bhupinder Singh as a new-age, technology and risk analysis focused lending institution. Its business verticals include retail lending, small business lending and education finance.