Lendingkart raised Rs.25 crore in debt funded by SBI (State Bank of India). The debt will be a loan in the form of a cash credit facility which will allow LendingKart to withdraw the loan in multiple tranches as and when the need arises.
The loan to a digital lending startup is a first for SBI, the largest public sector lender of India. The investment provides more thrust to banks across the country, noth in the public and private sector, to expand the reach to more borrowers by supporting lending companies that have the technology to do so.
Lendingkart managed to secure two private sector banks – Yes Bank and Kotak Mahindra Bank – that came on board as lenders on the platform. Harshavardhan Lunia, co-founder and CEO of Lendingkart said that the company was privileged to have partnered with SBI, a bank that has the same sentiments of supporting the unorganised small and medium enterprises (SME) sector. With the funds from State Bank of India, the company can expand its loan books and reach more unbanked SMEs.
Lendingkart has raised a total of Rs.378 crore debt mostly from NBFCs (non-banking financial companies) like IFMR Capital, Aditya Birla Financial Services and Manappuram Finance. The company also raised Rs.200 crore in equity funds from investors that include Darrin Capital Management, India Quotient, Mayfield India, Saama Capital, and Bertelsmann India Investment.
Using technology and non-traditional data sources, Lendingkart is able to carry out a unique credit appraisal. The company represents a group of startups that includes IndiaLends, Capital Float and Neogrowth. These startups offer small ticket loans to borrowers whose credit history is limited. These loans are usually unsecured and is meant to provide businesses with working capital and finance for immediate needs.
Lendingkart raises money from the market every now and then, and uses the finance to provide loans to borrowers.