Lending fintech company Lendingkart has raised a debt funding 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).
Commenting on the fundraise, Harshvardhan Lunia, CEO & Founder at Lendingkart said, “With the continued growth path and a sheer commitment to provide 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 utilised for the purpose of on-lending business loan to the MSME segment, thus empowering the MSME segment to augment their business.
“The newly gained funds will help us in reaching out to more entrepreneurs and ensure financial aid for their businesses. With more small and medium businesses coming into the mainstream, the dream of “Aatmanirbhar Bharat” and “5 trillion economy” will come to reality.” added Lunia.
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 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 startup in the working capital space for MSME. The Company has developed technology tools based on big data analysis and machine learning algorithms which facilitate lenders to evaluate borrower’s credit worthiness and provide other related services.
The company claims to have built a proprietary platform to solve for the basic building blocks of MSME financing such as distribution, origination, underwriting, engagement, and collections, and by democratising access to this platform by providing open access to APIs across the funnel.
According to Lendingkart, since its inception, it has evaluated nearly half a million applications, disbursing over 1,40,000 loans to more than 1,20,000 MSMEs in 4000+ cities and towns across all states and union territories of India (Serving 12000 Pincodes), making it an NBFC having the largest geographical footprint in the country.
The fintech platform Yubi works by freeing the flow of finance between borrowers, lenders, and investors. The Yubi product suite helps for the empowerment of MSMEs on one side, and growing a healthy loan book for the larger banking ecosystem on the other, said the company. According to Yubi, as a debt platform for enterprises, lenders and investors, it offers a comprehensive bouquet of debt products.
InCred, on the other hand, uses technology and data-science to make lending quick, simple and hassle-free. It believes traditional ways of lending can exclude those most in need because of outdated, rigid and often inefficient processes. The company uses a simplified lending process with a sharp focus on serving borrowers’ unique needs and circumstances – offering customers a hassle-free borrowing experience.
InCred Finance, the lending business of the group was founded in 2016 by Bhupinder Singh as a new-age, tech-and risk-analytics-focused lending institution. Its business verticals include retail lending, small business lending and education finance.