Lendingkart raises $32 million in Series B funding round1 min read . Updated: 29 Jun 2016, 02:40 AM IST
Lendingkart will use the funds to improve its data science capabilities, enhance its technology solutions, and build a better infrastructure for mobile capabilities
Mumbai: Lendingkart Technologies Ltd, which provides working capital finance to small and medium enterprises (SMEs), has raised $32 million ( ₹ 205 crore) in a second round of funding led by Betelsmann India Investment, the company said on Tuesday.
Darrin Capital Management and existing investors Mayfield India, Saama Capital and India Quotient also participated in the debt plus equity round of funding.
According to the company, it has raised $20 million in equity and $12 million in debt.
In July 2015, Lendingkart raised $10 million from venture capital funds Saama Capital, Mayfield and two individual investors, Ashvin Chadha and Shailesh Mehta.
Founded in 2014 by Harshvardhan Lunia and Mukul Sachan, Lendingkart will use the funds to improve its data science capabilities, enhance its technology solutions, and build a better infrastructure for mobile capabilities.
“With Bertelsmann onboard, we look forward to leveraging its deep understanding of global financial products as well as Internet businesses. Bertelsmann has strategic insights of the Fin-tech space with end-to-end process knowledge and expertise in digital origination. Bertelsmann brings a fresh perspective on digital distribution and data-driven risk assessment which will help us in becoming the leading lending platform for SMEs in India," Lunia said in a statement.
Lendingkart provides instant and flexible financing solutions to borrowers using the web and smartphones. The company claims that the funds are transferred within 24 hours of documentation requirements being met.
Since 2014, Lendingkart has disbursed loans to customers in 135 cities across 22 states, witnessing a 20% month-over-month growth in loan origination, it said in the statement.
The company competes with Bengaluru-based Capital Float (Zen Lefin Pvt. Ltd), Instakash Technlogies Pvt. Ltd, Neogrowth Credit Pvt. Ltd, IndiaLends (GC Web Ventures Private Limited), among others.
In May, Capital Float raised $25 million ( ₹ 170 crore) in an investment round led by US-based Creation Investments. In August, Mumbai-based NeoGrowth raised ₹ 15 crore from Frontier Investments Group and IndiaLends raised about ₹ 6.5 crore from DSG Consumer Partners, Siddharth Parekh and other angel investors.