Lendingkart Finance Limited has raised fresh debt funding from private sector bank YES Bank.
The funds will be utilized to further build the loan book as the company expands their reach to SMEs operating in tier 3 and below cities facing a lack of formal credit facilities, the company said in a statement.
Harshvardhan Lunia, CEO, and Co-founder, Lendingkart Technologies, said,
“”We firmly believe that our relationship will prove to be mutually advantageous, complementing each other’s strength as we drive true financial inclusion. At Lendingkart Finance, as we expand our reach to meet the growing needs of millions of small businesses in the country, we are extremely pleased to have Yes Bank onboard supporting our vision.
Yes Bank is a dynamic and innovative institution with sound knowledge of the Indian financial sector while also undertaking substantial work towards promoting FinTech in the country. We firmly believe that our relationship will prove to be mutually advantageous, complementing each other’s strength as we drive true financial inclusion.”
Aligned with the Government’s agenda towards building financial inclusion, Lendingkart Finance claims to be working towards ensuring seamless availability of working capital financing for small and medium businesses across the country that do not have access to traditional credit avenues. Till date, more than 11,000 loans have been disbursed by Lendingkart Finance to over 7500+ SMEs present across India, it said.
The company was founded in 2014 by Lunia and Mukun Sachan with the aim to help entrepreneurs and small businesses with Working Capital Finance by using analytics and big data scoring to evaluate the client’s business.
Lendingkart has gone trough several rounds of raising funds, the most recent one raised an undisclosed debt amount from DCB Bank Ltd. The company has previously accumulated about Rs. 250 crore from DCB and Yes Bank and several NBFCs including IMFR Capital Finance Pvt. Ltd, Hinduja Leyland Finance Ltd, Caspian Impact Investments Pvt. Ltd, Mannapuram Finance Ltd and Sundaram Finance Ltd.
Additionally, Lendingkart has also raised $20 million in equity with another $12 million in debt from a funding round led by German giant Bertelsmann Indian Investments in which companies such as Darrin Capital Management, Saama Capital, and India Quotient participated.