In a significant development for the Indian fintech scene, Lendingkart, a prominent startup, has secured a substantial Rs 200 crore in long-term debt funding from the renowned financing platform, EvolutionX Debt Capital. This strategic investment marks EvolutionX’s third foray into the growth stage debt financing domain, following its successful partnerships with API Holdings (PharmEasy) and Udaan.
Lendingkart’s operations revolve around its NBFC arm, Lendingkart Finance Limited, and a subsidiary, Lendingkart Technologies, which offers innovative co-lending Software-as-a-Service (SaaS) solutions. The infusion of fresh capital will play a crucial role in fueling the introduction of new products tailored for the benefit of Micro, Small, and Medium Enterprises (MSMEs). These new offerings include credit cards designed specifically for MSMEs, personal loans catering to the needs of self-employed individuals, and gold loans. The company’s official statement emphasizes its commitment to expanding its product range to better serve the market.
The fiscal year 2022-23 brought significant success for Lendingkart, with the company reporting a notable profit of Rs 120 crore. This impressive achievement reflects a remarkable 44% growth in disbursements compared to the previous year. Moreover, the recent acquisition of Upwards, a digital lending platform, for a substantial sum of Rs 100 crore, showcases Lendingkart’s dedication to augmenting its range of services.
Proud of its status as one of the few profitable fintech firms operating at scale in India, Lendingkart’s Founder and CEO, Harshvardhan Lunia, underscores the company’s unwavering commitment to employing efficient and robust technology to uplift the underserved MSME sector.
The backing of EvolutionX Debt Capital, supported by prominent entities such as Temasek and DBS, has proven to be a game-changer. This marks EvolutionX’s third investment and establishes the platform as a pioneer in the fintech domain. EvolutionX’s previous investments in API Holdings and Udaan have already proven to be successful ventures.
Rahul Shah, Partner of EvolutionX Debt Capital, exudes confidence in the vast potential of the Indian MSME credit market for fintech players. He firmly believes that Lendingkart, with its cutting-edge technology stack encompassing customer acquisition, credit underwriting and collection, as well as its innovative product customization capabilities, will continue to spearhead the industry and effectively address the funding gap for MSMEs.
Lendingkart Group’s impressive lineup of international investors, including Fullerton Financial Holding (FFH), a subsidiary of Singapore Sovereign Fund Temasek Holdings, as well as Bertelsmann, Mayfield India, Saama Capital, Sistema Asia, India Quotient, and others, underscores the company’s allure for global investors. With approximately Rs 1,050 crore raised in equity funding so far, Lendingkart remains a leading force in India’s fintech landscape, poised for even greater success in the times to come.
ALSO READ:-IdeaForge Secures ₹255 Crore Funding from Anchor Investors, Sets Stage for Upcoming IPO
To get more updates, Follow us on Facebook, Twitter and Instagram and LinkedIn