Digital lending platform Lendingkart raised Rs 100 Cr debt from Stride Ventures

Digital lending platform Lendingkart, which caters to small and medium-sized businesses, has obtained debt of Rs 100 crore ($12 million) and equity of Rs 8 crore (almost $1 million) from Stride Ventures. The Ahmedabad-based company has closed two significant debts in the last 12 months.

According to Lendingkart’s regulatory filing obtained from the RoC, the company’s board has decided to issue 10,000 non-convertible debentures and 454 Series D5 CCPS in order to raise Rs 108 crore, or $13 million.

The Temasek-backed business has raised Rs 318 crore ($38 million) in debt to date, according to the filings. The debt fund will be paid to Lendingkart in two installments of Rs 50 crore ($6 million), with an annual coupon rate of 14%.

As per the media, the post-allotment valuation of the company is approximately $690 million.

Through external commercial borrowing (ECBs) from a fund managed by BlueOrchard, LendingKart was able to raise $10 million as recently as last month.

As of right now, investors including Fullerton, Bertelsmann, Mayfield India, Saama Capital, Sistema Asia, and India Quotient have contributed equity capital totaling Rs 1,050 crore ($126 million) to Lendingkart.

Lendingkart provides loans to MSME owners, with an average ticket size of Rs 5 lakh to Rs 6 lakh. It has distributed more than Rs 18,700 crore to more than 300,000 businesses located in 4,100 cities, according to its website.

With a 33.4% increase in operating revenue to Rs 858 crore in FY23, Lendingkart had a successful year. The company reported a profit of Rs 119 crore during the same time frame. It has not yet submitted its FY24 annual financial results.

An IPO is scheduled for the company by the end of the following year, according to a report in the media. Before going public, Lendingkart hopes to manage assets worth over Rs 10,000 crore.