Lendingkart is an online lending platform providing loans to small and medium enterprises. The subsidiary under Temasek, Fullerton Financial Holdings announced its plans to acquire the controlling stake in the fintech firm following the new investment. Fullerton Financial Holdings is expected to invest Rs 252 crore in the lending platform. Lendingkart plans to use these fresh proceeds to scale its operations, enhance its platform, advance its technology, and develop its market presence.
Lendingkart also intends to use some of this investment to increase its reach and enter the underserved markets. The equity investment came after a gap of four years during its primarily raised rounds through multiple debt rounds. After this investment, Fullerton Financial Holdings will become the startup’s major shareholder. Lendingkart mentioned that the investment from the FFH will help them deepen their reach in underserved markets while moving towards their mission to provide financial infusion for small businesses in India. Inc42 reported.
Lendingkart provides loaning options such as SME loans, working capital loans, and business loans for women. Temasek’s Fullerton Financial Holdings has invested over Rs 772 crore in the fintech startup to date. Lendingkart is expected to be valued at 100 million USD following the new funding round from FFH. Economic Times reported. The startup data intelligence platform, thekredible mentioned that before this round, Temasek had over 38 percent stake in the lending firm.
The data intelligence platform, tracxn mentioned that the firm has raised around 228 million USD across 27 rounds since its inception, including $12 million secured from stride ventures and others during its conventional debt round in June. The founder of lendingkart, Harshvardhan Lunia said that the company aims to replicate FFH’s past success in the Indian fintech market. This investment shows the investor’s trust in Lendingkart’s market potential and business model. Lendingkart faces competition from other loaning platforms like FlexiLoans and Neogrowth.
The lending platform claims to disburse loans with an average ticket size of Rs 5 to 6 lakh to small and medium enterprises. The startup has provided over Rs 18,700 crore in loans to 300,000 businesses across 4,100 cities. The company posted a 33.4 percent increase in its operational revenue to Rs 858 crore in FY23 with a profit of Rs 119 crore in the same duration.
Conclusion :
A digital lending platform, LendingKart announced that Fullerton Financial Holdings will acquire the majority of its stake with an additional investment of $30 million. The company offers options related to business loans and working capital loans. The startup plans to use this fresh capital to expand its reach in underserved markets and advance its technology.
Lendingkart has raised $228 million across multiple funding rounds to date. The firm competes with other startups in the same market segment such as Neogrowth. The development came just after the fintech sector saw increased interest from investors. The company previously secured 12 million USD during its debt funding round led by stride ventures.
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