Lendingkart Finance Ltd funding
The funds will help Lendingkart to grow the reach of its financial products to more than 100 sub-industries across the country, through its digital platform, the startup stated.
Lendingkart’s NBFC arm, Lendingkart Finance Ltd, which has helped distribute more than one lakh loans to over 90,000 MSMEs across 29 states, has actively been powering the struggling MSME sector which suffered a massive hit due to the COVID-19 pandemic last year.
“The funding demonstrates the continued international support towards India’s vibrant MSME sector and its critical role in contributing to India’s vision to become a $5 trillion economy vision,” said Harshvardhan Lunia, Co-founder and Managing Director, Lendingkart, in a press statement.
“With this new fundraise, Lendingkart will fast-track its efforts to improve financial inclusion and credit reach to our small businesses and women entrepreneurs,” he added.
The parent company, Lendingkart Group, has marquee names such as Saama Capital, Mayfield India, Fullerton Financial Holdings (FFH) (a unit of Singapore’s Temasek Holdings), Bertelsmann India Investments, India Quotient, and Sistema Asia Fund as its investors, and has raised Rs 1,000 crore in equity funding, till date.
“The new transaction is aligned to FMO’s ambition to accelerate financial inclusion through innovative technological solutions. As India recovers from the pandemic and uncertainties presented by it, we are pleased we can partner with Lendingkart to better support its customers, with a focus towards women-run businesses and micro-enterprises,” Huib-Jan de Ruijter, Chief Investment Officer at FMO said.
In FY20 alone, the startup distributed 53,000 loans, up 83 percent over 2019, the company said. It also raised Rs 319 crore equity in Series D funding during the pandemic.
The MSME sector is a significant contributor to India’s growth story. According to the Confederation of Indian Industry (CII), the sector contributes 6.11 percent to the manufacturing GDP, 24.63 percent to the GDP from service activities, and 33.4 percent to India’s manufacturing output.
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