Lendingkart Finance, an Ahmedabad-based SME lending startup has raised around $7.7 million (Rs 50 CR) debt funding from YES Bank, according to a report in Inc42.
The startup will use the funds raised to further expand its reach to SMEs operating in tier 3, 4 and rural towns where there is a lack of formal credit facilities.
â€śYES Bank is a dynamic and innovative institution with sound knowledge of the Indian financial sector while also undertaking substantial work towards promoting fintech in the country. We firmly believe that our relationship will prove to be mutually advantageous, complementing each otherâ€™s strength as we drive true financial inclusion,â€ť Harshvardhan Lunia, CEO and co-founder, Lendingkart Technologies said.
Founded in 2014 by ex-banker and ISB Hyderabad alumnus, Harshvardhan Lunia and former ISRO scientist, IIM Bangalore alumnus, Mukul Sachan, Lendingkart is an instant working capital finance platform.
According to a company statement, Lendingkart Finance Limited is a non-deposit taking NBFC, offering small business loans for SMEs in India.
The idea is to transform small business lending by providing easy access to credit for SMEs. The company currently has a presence in Ahmedabad, Bengaluru, and Mumbai, but has a service reach across India. Till date, it has disbursed more than 11,000 loans to over 7,500+ SMEs present across India, the company claims.
Inc42 reports that Lendingkart uses analytics and big data scoring to evaluate a prospective clientâ€™s business.
It currently has a ticket size of $740 to $14.8K (Rs 50,000 to 10 Lakhs).
Previously, Lendingkart raised about $4.65 million (Rs 30 Cr) in non-convertible debentures from alternative asset management firm Anicut Capital in April 2017.
As per a Nasscom-KPMG report, the Indian fintech software market is forecasted to touch $2.4 billion by 2020, from the current $1.2 billion.
Other startups in the SME lending segment apart from Lendingkart include Quikrupee, SMEcorner, Innoviti, Biz2credit, smehelpline, and smegetmoney.