Lendingkart is a Bengaluru and Ahmedabad-based online money lending platform for small and medium enterprises (SMEs). The startup had announced yesterday (12/06/2017) that it had received a loan of Rs. 50 crores (US $7.8 million) from Yes Bank, India’s fifth largest private sector bank. The startup announced yesterday that it plans to utilize the loan received to strengthen its loan book and expand its presence to Tier 3 cities in India where loan givers are in short supply. Read more on Funding
The funds were raised by Lendingkart Finance Ltd, the company’s non-banking financial company (NBFC) arm. Unlike most of the startups in its domain, Lendingkart funds startups using its own loan book rather than connecting lenders and borrowers. Lendingkart has given more than 11,000 loans to more than 7500 SMEs so far. Just three months prior to borrowing this loan from Yes Bank, Lendingkart had raised a fund amounting to Rs. 30 crores from Anicut Capital LLP.
Lendingkart was founded in 2014 by Harshvardhan Lunia and Mukul Sachan. It provides loans to SMEs without them having to show a collateral. It has developed analytical tools based on Big Data analytics that helps them evaluate borrowers’ creditworthiness. The startup claims that it takes only fifteen minutes for borrowers to complete the loan application process on their website or mobile app and that it does not take more than three days time to disburse the loan. Lendingkart currently operates in 650 cities and towns across India and claims that over 2,00,000 startups in the country are seeking loans from it.
The other startups in the fin-tech sector which have raised funds this year include the Mumbai – based Paysense Services India Pvt. Ltd. which raised US $5.3 million during May, this year from the Singapore-based VC firm, Jungle Ventures. During the same month, Social Worth Technologies Pvt. Ltd, which runs the online lending platform, EarlySalary, raised US $4 million in Series A round of funding from IDG Ventures India and mortgage lender Dewan Housing Finance Corp. During April this year, the online lending startup Capital Float had raised US $2.3 million(Rs 15 crores) in Series A round of funding from Mahindra & Mahindra Ltd’s NBFC arm. During March this year (2017), the Mumbai – based SME and consumer lending platform, InCred Finance had raised Rs. 25 crores in Series B round of funding from the private equity firm, Paragon Partners. Read more on Startup News