Lendingkart raises $10.5 million from Sistema Asia, others1 min read . Updated: 07 Sep 2017, 07:10 AM IST
Online loans start-up Lendingkart will use the funds to increase its loan book and invest in expanding technology and analytical capabilities
New Delhi: Lendingkart Technologies has raised $10.5 million from Singapore-based Sistema Asia Fund and existing investors, the company said on Wednesday.
Bertelsmann India Investment, Mayfield India, Saama Capital, India Quotient and Darrin Capital Management also invested in the latest round.
Sistema Asia Fund Advisory is the Asia-focused fund of Moscow-based Sistema, a business group engaged in telecom, retail, and pharmaceuticals, among other sectors. The fund is also an investor in Indian start-ups Seclore, Qwikcilver and Wooplr.
According to a report in The Economic Times on 6 September, Lendingkart is in talks to raise $50-80 million in series C funding.
Lendingkart had raised $32 million in series B funding led by Betelsmann India in June last year.
“We are excited to have Sistema Asia Fund on board and look forward to further building our relationships with existing investors who continue to bring to the table fresh perspectives and strategic insights on market dynamics of current and future trends," said Harshvardhan Lunia, co-founder and chief executive, Lendingkart.
The company said it will use the funds to increase its loan book and invest in expanding technology and analytical capabilities.
Lendingkart Technologies, along with its NBFC arm Lendingkart Finance, offers collateral-free loans to SMEs (small and medium enterprises) for working capital and other requirements. It raises money from banks and other NBFCs and on-lends it to customers using proprietary credit underwriting technology.
“It is heartening to witness the exponential pace at which Lendingkart Technologies is scaling and solving a fundamental problem that ails small businesses in the country. Lendingkart’s data science driven approach and contactless distribution model is the answer to the needs of the SME sector overlooked by traditional banking infrastructure," said Dhruv Kapoor, managing director at Sistema Asia Fund.
The latest round takes the total funding raised by the company to Rs534 crore, that includes equity infusion of Rs243 crore and as much as Rs291 crore of debts raised from banks and NBFCs.
Lendingkart was founded in 2014 by Lunia and Mukul Sachan. The company claims to have disbursed loans to over 10,000 borrowers.