Lendingkart a Ahmedabad based digital lending platform for SME and startups has raised a $32 million in its Series B round of funding from BII- Bertelsmann India Investments. Its existing investors India Quotient, Saama Capital & Mayfield and Darrin Capital Management also participated in this round.
Out of the total funds raised, $20 million was raised in equity and $12 million raised as debt. The funds will be used in the enhancement of technology, strengthening of the data science capabilities, and infrastructure for improved mobile capabilities. Since 2 years the startup has provided loans to customers across 22 states in 135 cities, which overall witnessed a 20% month over month growth in loan origination.
It was founded in 2014 by Harshvardhan Lunia and Mukul Sachan- an ex ISRO scientist. It aims to provide simple, flexible and instant financing solutions to borrowers. It has partnered with Snapdeal, Flipkart, & trade associations to serve both offline and online SMEs equally.
Harshvardhan Lunia, Co-Founder, Lendingkart said
“Our investors share our vision and have been instrumental in our growth journey. With Bertelsmann onboard, we look forward to leveraging its deep understanding of global financial products as well as Internet Businesses. With Financial Services leaders such as Arvato Financial Solutions as a part of the Group, Bertelsmann has strategic insights of the Fintech space with end to end process knowledge and expertise in digital origination. Bertelsmann brings a fresh perspective on digital distribution and data driven risk assessment which will help us in becoming the leading lending platform for SMEs in India.”
The users can apply for loans with their website, mobile or app. It looks for users credit worthiness by using proprietary algorithm with more than 2200 variables. If the user is found eligible for a loan, then the funds are provided to their account within 24 hours. It has no physical offices, no collateral and no physical verification staff members on the ground.
Another credit lending platform raised funding includes IndiaLends which raised funds in it’s Pre-Series A round funding, and CreditMantri raised $2.5 million from Capital Float, IDG Ventures and others.