Lendingkart will use the funds towards growing its loan book and expanding its reach across SME industries in different parts of the country.

Lendingkart Finance raises Rs 30 crore debt funding from Dutch development bank
Atom Fund Raising Wednesday, January 10, 2018 - 09:34
Written by  S. Mahadevan

Indian lending startup Lendingkart, which specializes in offering loans to SMEs has raised a funding of Rs 30 crore from a Dutch development bank, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO). The amount has come in the form of non-convertible debentures (NCDs) as part of debt funding in the startup.

Lendingkart has evolved a very sophisticated method of evaluating the loan applications and in assessing their financial status. They use technology, like big data analytics and machine learning algorithms, where over 5000 variables are put to work before a decision is arrived at. This methodology has come under praise from the Dutch investor also. Lendingkart is able to process the loan applications using such technology and if all goes well, the loan can even be disbursed within 72 hours.

Speaking on the latest development, Harshvardhan Lunia, CEO and Co-founder, Lendingkart Technologies said, “With a committed portfolio of €9.8 billion, FMO is one of the larger bilateral private sector development banks globally and we are elated to welcome them on board. We are looking to build a long-term relationship with them that will help us achieve our growth goals going ahead. 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.”

Lendingkart has so far advanced about 20, 000 loans to 13, 000 SMEs through the three offices they have in Bangalore, Ahmedabad and Mumbai and the 950 cities where they have arrangements. And, in terms of the variety of sectors these borrowers belong to, some 23 diverse sectors have been covered by them. The startup is also meeting one of the objectives of the Government of India, which is keen on financial inclusion. The SME sector is one which invariably finds itself at a disadvantage when it comes to raising capital for their operations.   

This new influx of debt funds will be used towards growing the loan book and expanding the reach of Lendingkart Finance across the existing regions it is covering and in growing the expanse.

FMO, the Dutch development bank focuses on certain key sectors like financial institutions, energy and agribusiness, food & water for making investments. FMO has control over a portfolio in excess of €9.2 billion and has made investments in 92 different countries. FMO ranks among the top bilateral private sector development banks, worldwide.