Lentra, a provider of cloud loans, has raised $27 million as part of its extended Series B round, which was co-founded by MUFG Bank and Dharana Capital.
The software as a service (SaaS) startup raised $60 million in a Series B round in November 2022, which was sponsored by Citi Ventures and led by its current investors Bessemer Venture Partners and SIG Venture Capital. Prior to the Series B round, HDFC also disclosed plans to sell its 3.21% stake in Lentra, valued at Rs 54.16 crore. According to the banking company, this would be a partial bank divestiture in the five-year-old startup.
Lentra, which was founded by D Venkatesh and Ankur Handa, was created with the goal of providing banks with a fully digital ecosystem. It provides ready-to-use third-party API connectors to numerous data sources for banks. Among others, it collaborates with HDFC Bank, Federal Bank, Standard Chartered, and IDFC First Bank.
Lentra has successfully established subsidiaries in Vietnam, the Philippines, Indonesia, and the US in addition to India. Lentra has also finished launching its loan management system, known as 1LMS, which enables lenders to meet the needs of billions of borrowers with increased speed and accuracy thanks to a strategic partnership with Google Cloud.
The business states that it provides services to more than 60 financial institutions and that loan applications totalling more than $27 billion have been processed on its platform.
According to the company’s annual financial statements, Lentra saw a 60% increase in operating revenue, from Rs 44.72 crore the previous fiscal year to Rs 71.53 crore in FY22. Its losses increased over twofold during that time, from Rs 24.7 crore to Rs 52 crore. The business anticipated ending FY23 with revenues of Rs 180 crore.
The company hopes to sign up 250 banking partners by 2027 and generate $250 million (roughly Rs. 2,000 crores) in annual recurring revenue (ARR).
