Lendingkart Finance, a part of Lendingkart Group and an NBFC that underwrites loans has raised Rs25 crore in debt from State Bank of India (SBI).
According to Mint report, the debt fund is in the form of cash credit facility which essentially allows the company to draw the amount over separate tranches as and when it needs it.
“We feel extremely privileged to have partnered with India’s largest bank which also shares the same vision of supporting the unbanked SME (small and medium enterprise) 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,” said Harshvardhan Lunia, co-founder, and CEO Lendingkart.
Lendingkart was founded in 2014 by Harshvardhan Lunia and Mukul Sachan. It deals with the loans for small and medium enterprises from its own books. The company provides collateral-free working capital loans ranging from Rs 50,000 to Rs 10 lakh to small business. The company claims to have facilitated a disbursement of more than 15,500 loans across more than 850 cities in India.
Lendingkart funding history:
With the latest round, the total debt raised by the company to date has grown to Rs 378 crore—largely from non-banking financial companies (NBFCs) such as Aditya Birla Financial Services, IFMR Capital, and Mannapuram Finance.
Apart from SBI, Ahmedabad-based digital lending platform Lendingkart onboarded two private sector banks—Kotak Mahindra Bank and Yes Bank as lenders.
In October, Lendingkart announced its partnership with TransUnion CIBIL, one of India’s leading credit information companies. Following the tie-up, self-employed professionals and small business enterprises will now be able to access loans offered by Lendingkart Finance on the TransUnion marketplace platform.
The NBFC platform had raised Rs 162 crore between August and September this year in multiple tranches from IFMR Capital, Capital First, Tata Capital Financial Services (TCFSl) and Manappuram Finance.