Fintech firm Lendingkart on Tuesday said its NBFC arm, Lendingkart Finance has raised USD 15 million (about Rs 110 crore) in debt funding from the FMO – Dutch entrepreneurial development bank.
With this deal, Lendingkart strengthens its three-year relationship with the bank receiving funds through NCDs and increases its cumulative exposure to USD 19 million, a statement said.
This new influx of funds to Lendingkart will be utilised towards expanding the reach of financial products to the MSME segment through Lendingkart’s digital platform, it added.
Lendingkart Group is financed by investors like Fullerton Financial Holding, Bertelsmann, Mayfield India, Saama Capital, Sistema Asia, India Quotient and others and has raised around Rs 1,050 crore in equity till date. The company has till now raised Rs 5,000 crore in debt funding.
Lendingkart Finance has disbursed about one lakh loans to more than 90,000 MSMEs across the country.
“Lendingkart has continued to support the MSEs to help them regrow their businesses and the coming financial year is being viewed differently with businesses focusing on sustainable and digital mode of operations.
“The new funds will be deployed towards expanding the reach of its financial products to the vast MSME segment across about 100 sub-industries spread across India,” the statement said.
Harshvardhan Lunia, co-founder and Managing Director of Lendingkart said the funding demonstrates the continued international support towards India’s vibrant MSME sector and its critical role in contributing to the vision of becoming a USD 5 trillion economy.
“With this new fund raise, Lendingkart will fast-track its efforts to improve financial inclusion and credit reach to our small businesses and women entrepreneurs. We are proud of our partnership with FMO and look forward to continuing our long-term association with them,” he added.