Lendingkart plans IPO in 18-24 months

Founded in 2014 by ex-banker Lunia and ex-ISRO scientist Mukul Sachan, Lendingkart has two arms—Lendingkart Finance Ltd and Lendingkart Technologies Pvt Ltd.

Gopika Gopakumar
Updated5 Oct 2023, 10:04 PM IST
Companies
Companies

Lendingkart, a digital lending platform for micro, small and medium enterprises, is preparing to come out with an initial public offering once the assets under management cross 10,000 crore in 18-24 months, according to the company’s co-founder and chief executive officer Harshvardhan Lunia.

The Fullerton-backed NBFC fintech will close this fiscal year with a balance sheet size of 8,000 crore and will touch 12-13,000 crore over the next year, he added.

“We have been growing at around ~45% yoy on revenue basis. IPO will give a good exit for our investors,” said Lunia. Acquisitions are fewer in the fintech space as large corporates are not very keen to look at acquisitions and instead want to build internally, he added.

With this rate of growth in mind, the company is on track to raise around 600 crore of equity in the next 6-12 months.

That said, Lunia assures that Lendingkart doesn’t require significant capital as almost 80% of its loan book is generated through co-lending and co-origination with banks and non-banking financial institutions.

Lendingkart has so far raised around 1,050 crore in equity from investors like Fullerton Financial Holding (FFH) (100% subsidiary of Singapore Sovereign Fund Temasek Holdings), Bertelsmann, Mayfield India, Saama Capital, Sistema Asia and India Quotient.

Founded in 2014 by ex-banker Lunia and ex-ISRO scientist Mukul Sachan, Lendingkart has two arms—Lendingkart Finance Ltd (non-deposit taking NBFC) and Lendingkart Technologies Pvt. Ltd.

Unlike other non-bank lenders, Lendingkart offers unsecured loans based on cashflow of small businesses. These loans have a safety net in the form of central government schemes like Credit Guarantee Fund for Micro Units and Credit Guarantee Fund Trust for Micro and Small Enterprises.

The company disburses loans with an average ticket size of 5 lakh to 6 lakh to MSME business owners.

Lunia believes that consolidation will happen in the fintech space as there is a limited pool of capital.

“Consolidation will happen in fintech space. Either people will sell or buy or become big. There is a limited pool of capital. Top fintechs will get capital. Next 3-5 years will see lot of consolidation,” he said.

In February, Lendingkart acquired digital lending platform ‘Upwards’ for 100 crore. With this acquisition, the company looks to offer personal loans to MSMEs.

The company had clocked a net profit of 120 crore at the group level for the year ended March 2023 after reporting a net loss of 203 crore in the previous fiscal year.

The company has seen its revenue rise to 265 crore at the end of the first quarter from 825 crore last year. It is expected to touch revenue of 1,200 crore by end of FY24.

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First Published:5 Oct 2023, 10:04 PM IST
HomeCompaniesNewsLendingkart plans IPO in 18-24 months

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