SME lending platform Lendingkart Finance on Tuesday announced that it has raised $4.7 million (Rs 30 crore) in non-convertible debentures from Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), a Dutch development bank that invests in growth and frontier markets.
The latest funding comes less than two weeks after the company had raised Rs 25 crore in debt from State Bank of India, taking its total debt to Rs378 crore largely from non-banking financial companies (NBFCs) such as Aditya Birla Financial Services, IFMR Capital and Mannapuram Finance.
The fresh funds will be used towards growing the loan book and expanding the reach of Lendingkart Finance across SME industries in different parts of the country, the company said in a statement.
As of today, Lendingkart Finance claims to have disbursed over 20,000 loans to more than 13,000 SMEs across 23 diverse sectors.
Harshvardhan Lunia, CEO and Co-founder, Lendingkart Technologies said, “This being our first foreign debt raise, will open avenues for Lendingkart Finance’s future foreign debt funding as well. It is quite inspiring to see the emphasis that FMO lays on improving systems and processes for the borrower community and we are certain to imbibe some of their learning.”
“These freshly raised capital from our first financial inclusion and impact focused global fund, will be utilized to refuel our loan books that will allow us to cater to a wider range of SMEs who need working capital finance,” he added.
Lendingkart Finance, a wholly owned subsidiary of Lendingkart Group, is working towards ensuring availability of working capital for SMEs across the country that currently do not have access to credit or are capital deficient. The company uses technology and analytics tools, analyzing thousands of data points from various data sources to assess the creditworthiness of small businesses. Once the evaluation process is complete, loan amount is disbursed to the deserving borrower within 72 hours from the time of application.
Marnix Monsfort, Head of Financial Institutions, Asia, from FMO, said, “Digital lending is an exciting and a large space that has grown tremendously in the last couple of years. The innovation that the sector has witnessed has played a key role in bringing financial inclusivity to the remotest corners of India.”
Lendingkart Finance has expanded its operations pan India and is present in over 950 cities across 29 states and 7 UTs, offering quick and easy collateral-free loans. Till date, over 4,70,000 SMEs have reached out to the company for their credit requirement, it claimed.
Other startups in this segment that Lendingkart compete with include ZipLoan, Capital Float, Quikrupee, SMEcorner, Innoviti, and Biz2credit. In October last year, ZipLoan raised $3 million Series A funding from Matrix Partners India with participation from existing investors, including WaterBridge Ventures, Whiteboard Capital and former Capital18 MD, Sarbvir Singh. In August, Capital Float raised $45 million in a Series C round led by Palo Alto-based fintech investor Ribbit Capital.
With a committed portfolio of EUR 9.8 billion spanning over 92 countries, FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water.