Home / Companies / Start-ups /  Lendingkart raises Rs565 crore from Fullerton Financial Holdings, others

Bengaluru: Online loans start-up Lendingkart Technologies Pvt. Ltd on Monday said it has raised Rs565 crore equity capital in a Series C round of funding led by Singapore’s Fullerton Financial Holdings Pte Ltd and other existing investors.

Lendingkart offers collateral-free working capital and other business loans to small businesses. It also has another non-banking finance (NBFC) unit named Lendingkart Finance, which raises money from financial institutions and banks, and lends it out to customers.

With this new round of funding, Lendingkart group’s total equity and debt funding have gone up to $173 million (Rs1,129 crore).

The funds from the current round will enable the company to strengthen its technology and analytics capabilities. The group also aims to expand its credit product offerings to small enterprises especially among underserved micro enterprises.

Lendingkart Group also signed a Memorandum of Understanding with Fullerton India Capital, a fully owned subsidiary of Fullerton Holdings, for creating potential initiatives to support their respective businesses.

Lendingkart’s existing investors include Bertelsmann India Investment, Mayfield India, Saama Capital, India Quotient and Darrin Capital Management.

In the past, the company had borrowed from several non-banking financial companies (NBFCs) and private banks including Kotak Mahindra Bank Ltd and Yes Bank Ltd and from public sector lender State Bank of India.

Since inception, Lendingkart claims to have evaluated more than 100,000 loans applications and disbursed over 20,000 loans in more than 950 cities. Till date, the company claims to have disbursed loans to some 13,000 small businesses and enterprises.

Lendingkart uses in-house big data analytics and machine learning algorithms to evaluate the creditworthiness of a potential borrower using thousands of data points.

The company uses factors like financial health, comparative market performance, and compliance to determine creditworthiness.

“We are pleased to collaborate with Fullerton as they bring deep domain experience in the rapidly growing financial services space in India and globally. We look forward to leveraging their insights as we build a leading platform for digital lending in India. We would also like to thank our existing investors for continuing to support us in our growth journey," said Harshvardhan Lunia, chief executive of Lendingkart Technologies, in a statement.

“We are pleased with the opportunity to deepen our exposure in India’s rapidly growing financial services market. We believe that the deployment of technology to develop scalable and accessible financial services platforms, incorporating big data analytics and machine learning, will be critical to any lending business serving the underbanked and underserved customers in India, " said Gan Chee Yen, chief executive officer, Fullerton Financial Holdings.

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