Vartis Platforms, the parent of peer-to-peer lending platform LenDenClub, has launched UdhaarSaathi, a digital loan marketplace that offers collateral-free working capital loans of ₹15,000 to ₹2.5 lakh to kirana stores, pharmacies, street vendors and other small retailers. The company is targeting ₹1,000 crore in disbursements through the platform by the end of FY27, it said on 3 November 2026.
The launch takes Vartis beyond consumer credit into merchant working capital, a segment where a large share of India’s small shopkeepers still depend on informal lenders. Founder Bhavin Patel said the average ticket size on UdhaarSaathi is around ₹1 lakh.
How UdhaarSaathi Small Business Loans Work
UdhaarSaathi operates as a lending service provider (LSP) and loan marketplace, sourcing credit from multiple non-banking financial company (NBFC) partners. Vartis does not take credit risk on the loans it facilitates and earns fees when repayments are processed through its platforms.
- Loan size: ₹15,000 to ₹2.5 lakh, with no collateral.
- Credit assessment: lending partners use merchants’ banking and business transaction data, shared with their consent.
- Repayment: the UdhaarSaathi app listing describes a daily repayment option that lets shop owners repay after the day’s sales.
- Eligibility: an active business, a valid Aadhaar and PAN, and a bank account in the owner’s name, according to the UdhaarSaathi help centre.
The platform, formerly known as InstaVyapaar, went live in an early version in February 2026, and its final version launched a couple of months ago. Western India accounts for the largest share of its customers so far, followed by the South, East and North. The move mirrors a wider push by fintechs into merchant credit, such as Meesho’s ₹400 crore infusion into its lending arm.
Vartis’ Second Lending Platform After InstaMoney
UdhaarSaathi is the company’s second LSP platform after InstaMoney, which launched in 2017 and mainly serves individuals looking for small-ticket emergency loans. Founded in 2015 by Bhavin Patel and Dipesh Karki, Vartis also runs the lending technology platform Vartis One.
The business has recovered after the Reserve Bank of India’s tightening of P2P lending rules pushed it to a ₹10.6 crore loss in FY24. Net profit rose 183% to ₹96.2 crore in FY26 from ₹34 crore a year earlier, while operating revenue grew 43% to ₹338 crore. Total revenue, including interest and other income, stood at ₹366.6 crore.
What It Means for Digital Lending and IPO Plans
Patel said Vartis is strengthening governance across its platforms to prepare for a possible initial public offering, but has not fixed a timeline. “The next 12 to 18 months is what we are targeting to prepare ourselves,” he said. Any issue could be an offer for sale, as the company sees no current need for primary capital.
Cash-flow-based credit for small merchants is one of the fastest-moving areas of risk assessment in digital lending, and partnerships between technology providers and lenders are spreading, as seen when Infobip and Tesync brought AI-led digital lending to cooperative banks.
Key Takeaways
- Vartis Platforms has launched UdhaarSaathi for collateral-free loans of ₹15,000 to ₹2.5 lakh to small retailers.
- The company aims for ₹1,000 crore in disbursements by the end of FY27, with NBFC partners carrying the credit risk.
- Vartis posted a FY26 net profit of ₹96.2 crore and is preparing for an IPO over the next 12 to 18 months.
FAQ
Who can borrow on UdhaarSaathi?
Owners of active small businesses such as kirana stores, pharmacies and street vendors with a valid Aadhaar, PAN and a bank account in their name can apply; the lending partner decides final eligibility.
Does Vartis lend from its own balance sheet?
No. UdhaarSaathi works as a lending service provider and marketplace, and loans are given by partner NBFCs.
Featured image: LenDenClub founders. Photo: Inc42.
