FinTech Startup Lendingkart’s NBFC wing has announced $15 Mn debt funding from Dutch entrepreneurial Development Bank FMO. The NBFC wing of Lendingkart provides short-term working capital loans to SME borrowers underneath its entity Lendingkart Finance Limited, which is financed by international investors such as Fullerton Financial Holding (FFH), Saama Capital, Mayfield India, Bertelsmann, Sistema Asia, India Quotient.
Lendingkart Finance has since the company is established, evaluated nearly five hundred thousand applications disbursing over a million loans to more than 91,000 MSMEs in over 1300 cities across all twenty-nine states and union territories of the world.
The new funds are going to be facilitated to expand the company’s financial product offerings to the vast MSME segment across India’s 100 sub-industries. With this investment, Lendingkart aims to strengthen its three-year partnership with the bank receiving funds from NCDs and will increase its total exposure to $19 million.
Speaking on the fundraising, Harshwardhan Lunia, Co-Founder & MD, Lendingkart, said, “The FMO’s investment in Lendingkart is the testament to company’s robust growth fundamentals, which also includes its solid track record and business success amidst the pandemic’s unparalleled effect. Lendingkart is going to accelerate its efforts to enhance financial inclusion and credit reach for our micro businesses and women entrepreneurs with this new round of funding.”
Huib-Jan de Ruijter, Chief Investment Officer at FMO, said, “As India is trying to recuperate from the pandemic and the uncertainties followed by it. We are are incredibly happy to team up with Lendingkart to better serve its customers, with an emphasis on women-run businesses and small enterprises.”
In FY20 alone, the startup disbursed 53,000 loans, up 83 per cent over 2019, the company claims. It also managed to raise Rs 319 crore equity in Series D funding during the pandemic.
The MSME sector is an important contributor to India’s growth story. According to the Confederation of Indian Industry (CII), the sector contributes 6.11 per cent to the manufacturing GDP, 24.63 per cent to the GDP from service activities, and 33.4 per cent to India’s manufacturing output.