India-based online lender Lendingkart Technologies has secured Rs 319 crore (appr. $42.16 million) in funding through a Series D investment round, which was led by existing investors Bertelsmann India Investments, Fullerton Financial Holdings, IndiaQuotient, and Sistema Asia Fund.
LendingKart’s management said that the capital raised will be used to expand the service provider’s lending base. The funds will also be used to better serve underserved micro, small and medium enterprises (MSMEs), and to update the platform’s technology and analytics software.
The Ahmedabad-based firm has acquired Rs 1,050 crore (appr. $138.77 million) in funding, to date. In August of last year, LendingKart finalized a Rs 21 crore (appr. $2.77 million) round in equity from Sistema Asia Fund.
Harshvardhan Lunia, co-founder and managing director at Lendingkart Technologies, stated:
“The outbreak of COVID-19 and the resultant slowdown has had a tremendous impact on the economy. During these unprecedented times, MSMEs who are the backbone of the economy have significantly suffered grappling with varied economic uncertainties,”
Lunia added:
“The fresh round of funding will play a pivotal role in aiding us to help these impacted MSMEs to ensure business continuity amidst the ongoing crisis.”
Lendingkart Finance aims to provide loans within three business days or 72 hours. The company has reportedly issued more than 100,000 loans to over 89,000 MSMEs in 1,300 cities across India.
Lendingkart Finance offers credit to small local businesses after evaluating their creditworthiness using Big Data analytics tools and machine learning algorithms.
As mentioned on its official website, Lendingkart Finance Ltd (previously known as Aadri Infin Ltd) is a non-deposit taking non-banking financial institution (NBFC), offering SME lending in India.
The company plans to transform small business lending in the country by making it easier for SMEs to gain access to reliable credit. The firm’s software analyzes thousands of data points from several different data sources to determine the creditworthiness of MSMEs, as accurately as possible – before issuing loans.