SME lending startup Lendingkart Finance has raised $3.8 Mn in debt from the State Bank of India. Also, a portion of the financing will come in handy to widen Lendingkart Finance’s offering to SMEs across the country.
Founded in 2014 by Harshvardhan Lunia and Mukul Sachan, Lendingkart is an instant working capital finance platform that provides SMEs with easy access to credit and working capital. Aligned with the government’s vision to achieve financial inclusion, the company focuses on providing short-term loans with small-ticket sizes.
On the investment, Harshvardhan Lunia, Co-founder, and CEO, Lendingkart Technologies, said:
We feel extremely privileged to have partnered with India’s largest bank which also shares the same vision of supporting the unbanked SME sector. SBI, being one of the oldest and largest banks, has played a critical role in shaping India’s financial landscape for the last century.
The fintech startup uses proprietary technology tools based on machine learning algorithms and big data analytics to determine a borrower’s client’s creditworthiness. At present, the company provides short-term working capital loans ranging from $740 to $14.8K (INR 50K to 10 Lakhs).
Adding to that, Lunia said:
Their rich experience and sound knowledge of the banking industry will enable us to bridge the gap between demand and supply of small business loans in the country. With the funds raised, we will further grow our loan books, expanding our reach to many more underserved SMEs.
At present, the company has its offices in Ahmedabad, Bengaluru, and Mumbai. The company claims to have disbursed more than 20K loans to over 12K SMEs across 23 diverse sectors. The company also claims to have helped more than 370K SMEs have reached out to meet their credit requirement.
The SME lending startup is currently in the process of expanding its operations to over 950 cities across 29 states and seven union territories.
As per the official statement, the latest influx of funds will be utilized to bolster Lendingkart’s loan book. The fresh capital will also enable the startup to expand its geographical reach to over 950 cities.
The fundraise from SBI comes three months after the fintech platform secured $10.9 Mn (INR 70 Cr) funding from Sistema Asia Fund as well as existing investors Bertelsmann India Investment, Mayfield India, Saama Capital and others.