Lendingkart Raises INR 200 Crore in Debt Funding from EvolutionX Debt Capital

• ByStartupStory     |    June 27, 2023

Indian fintech startup Lendingkart has secured INR 200 crore in long-term debt funding from financing platform EvolutionX Debt Capital. Lendingkart operates through its NBFC arm, Lendingkart Finance Limited, which offers loans, and its subsidiary Lendingkart Technologies, which provides a co-lending Software-as-a-Service (SaaS) platform.

According to a statement released by the company, the fresh funding will be utilized to launch new products targeting the micro, small, and medium enterprises (MSMEs) segment. Lendingkart plans to introduce credit cards for MSMEs, personal loans for self-employed individuals, and gold loans. The company aims to further broaden its offerings and cater to the evolving financial needs of the MSME sector.

In the fiscal year 2022-23, Lendingkart witnessed significant growth, reporting a profit of INR 120 crore, a 44% increase in disbursements compared to the previous year. The recent acquisition of digital lending platform Upwards for INR 100 crore has also contributed to Lendingkart’s expansion strategy.

Harshvardhan Lunia, Founder and CEO of Lendingkart Group, expressed his pride in the company’s achievement as one of the few profitable fintechs operating at scale in India. Lunia highlighted Lendingkart’s commitment to supporting the underserved MSME sector by leveraging efficient and robust technology solutions.

This marks the third investment by EvolutionX Debt Capital, a growth stage debt financing platform backed by Temasek and DBS. Previously, EvolutionX made investments in API Holdings, the parent company of PharmEasy, and B2B e-commerce platform Udaan. EvolutionX recognizes the immense potential in India’s MSME credit space and believes that Lendingkart’s comprehensive tech stack, encompassing customer acquisition, credit underwriting, and collection, coupled with its product innovation capabilities, positions it as a market leader.

Rahul Shah, Partner of EvolutionX Debt Capital, stated, “We see tremendous opportunities for fintech players in India’s large but underserved MSME credit space. We believe Lendingkart will continue to lead the market and fill the funding gap for the MSMEs with its pioneering, end-to-end tech stack in customer acquisition, credit underwriting and collection, as well as its leading product innovation and customization capabilities.”

Lendingkart Group has attracted investments from prominent international investors such as Fullerton Financial Holding (a 100% subsidiary of Singapore Sovereign Fund Temasek Holdings), Bertelsmann, Mayfield India, Saama Capital, Sistema Asia, India Quotient, and others. With the latest debt funding, Lendingkart has raised approximately INR 1,050 crore in equity till date.

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