Digital lending platform Lendingkart raised Rs 200 Cr Debt funding from EvolutionX
In order to fund the company’s working capital needs, Lendingkart, a digital lending platform that focuses on micro, small, and medium-sized enterprises (MSMEs), has secured Rs 200 crore in a debt financing round led by Temasek-backed EvolutionX Debt Capital.
According to a press release from Lendingkart, the company intends to use the funds raised to expand its technology business through acquisition.
To date, Fullerton Financial Holding, Bertelsmann, Mayfield India, Saama Capital, Sistema Asia, and India Quotient have contributed roughly Rs 1,050 crore in equity to Lendingkart.
This occurs at a time when startups in India are choosing to raise debt capital more frequently due to a mismatch in valuation and a delay in equity funding. To develop and grow its business, the company is attempting to raise an additional Rs 600 crore in equity.
Lendingkart, which was co-founded in 2014 by Harshvardhan Lunia and Mukul Sachan, provides loans to MSME business owners with an average ticket size of Rs 5 lakh to Rs 6 lakh. Lendingkart intends to introduce credit on UPI within the next two to three months in an effort to diversify its product offering. The Reserve Bank of India allowed banks to transfer pre-approved credit lines over the UPI network in April of this year.
By the end of FY23, Lendingkart claimed to have disbursed loans totaling about Rs 4,000 crore. It plans to disburse loans totaling about Rs 6,000 crore by the end of this fiscal year and about Rs 10,000 crore over the following two years. A 200 crore rupee profit before tax is another goal the company has set for FY24.
