Lendingkart - How it Extends Working Capital Loans for SMEs?

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.

In the dynamic world of startups, tales of early closures brought on by a lack of funding and operating capital limitations are common. In order to close this significant gap in the market, Harshvardhan Lunia and Mukul Sachan founded Lendingkart in 2014. The corporation saw short-term working capital provision for new ventures as an ongoing difficulty and set out to transform it.

The goal of Lendingkart is to support your businesses financially so you can survive the difficult dynamics of the sector. This overview examines how Lendingkart, led by Mukul Sachan and Harshvardhan Lunia, has emerged as a key player in helping startups close the funding gap, thereby fostering expansion and operational success.

In this article, let's explore the world of Lendingkart—its founders, mission and vision, funding and investors, growth, and more.

Lendingkart - Company Highlights

Lendingkart - About
Lendingkart - Industry
Lendingkart - Founders and Team
Lendingkart - Startup Story
Lendingkart - Mission and Vision
Lendingkart - Name, Tagline, and Logo
Lendingkart - Business Model
Lendingkart - Revenue Model
Lendingkart - Challenges Faced
Lendingkart - Funding and Investors
Lendingkart - Investments
Lendingkart - Mergers and Acquisitions
Lendingkart - Growth
Lendingkart - Advertisements and Social Media Campaigns
Lendingkart - Awards and Achievements
Lendingkart - Competitors
Lendingkart - Future Plans

Lendingkart - About

Lendingkart is helping micro, small, and medium-sized enterprises access working capital loans to facilitate the easy functioning of the enterprise. The whole idea behind Lendingkart is that entrepreneurs in the 35–45 age bracket need short-term working capital loans for their SMEs. Lendingkart’s whole business module revolves around facilitating the availability of credit to small and microbusinesses digitally, and this process is effectively driven by data and analytics. So, cutting a long story short, it lends short-term capital loans to the companies that need them to carry on with their day-to-day activities.

Lendingkart aims to solve the huge gap in developing markets where firms have to wait for days before they get paid by their previous clients. And this possesses a huge hurdle for many who haven’t ploughed back any profits. Therefore, Lendingkart came into being to service these firms because their options are severely limited, as traditional banks find them too risky to lend money.

Fintechs in 2024: Navigating Toward a Brighter Future

In 2023, fraud and regulatory pressure tarnished loan apps and fintech companies. Hoping for a better, more responsible 2024.

StartupTalkyPrithvi Durai

Lendingkart - Industry

India's digital lending market has witnessed an extraordinary Compound Annual Growth Rate (CAGR) of 132% from 2017 to 2022. This remarkable growth is attributed to the transformative impact of new digital lending enterprises on the country's traditional financial landscape. Notably, investments exceeding $1 billion have been poured into the Indian digital lending sector, underscoring the high confidence that investors place in its potential for further expansion.

The momentum is set to propel the digital lending sector to an astonishing USD 515 billion by 2030, as projected by a comprehensive analysis from IIFL FinTech. This significant forecast not only positions India as a major player in the global digital lending ecosystem but also reflects the increasing acceptance and integration of digital financial services into the nation's economic fabric.

Lendingkart - Founders and Team

Harshvardhan Lunia

Harshvardhan Lunia is the co-founder and CEO of Lendingkart. Before founding Lendingkart, Harshvardhan was a founder and director at Domestic Finance and Investment private limited. A chartered accountant by profession, Harshvardhan also worked as a Relationship Manager at ICICI Bank, City Manager (SME banking) at Standard Chartered Bank, and Small Business Relationship Manager at HDFC Bank, before starting his entrepreneurial journey.

Mukul Sachan

Mukul Sachan, co-founder of Lendingkart and an alumnus of IIT and IIM, with extensive experience in engineering and finance, exited Lendingkart in May 2019 to launch his venture, Optimus Capital. Later, he assumed the role of Managing Director at Affinidi India, contributing his expertise to the fintech sector's leadership.

Lendingkart - Startup Story

The path Harshvardhan took changed when he made the decision to quit his London job in order to pursue his goal of launching a debt consulting platform. Having experience with Awards, particularly small ones, and their funding plans, he decided to pursue entrepreneurship. Even though the first enterprise did not live up to expectations, it was a turning point that encouraged him to look for ideas from profitable businesses in the US, UK, and China.

The idea for Lendingkart was born out of this investigation and study in 2014. Motivated by the goal of filling financial gaps in neglected Indian market segments, Harshvardhan imagined a debt advising platform that would resemble well-established international models. This initiated the groundbreaking journey of Lendingkart to rethink financial help for Indian enterprises.

Digital Lending App Repository Proposed by RBI

To combat the problem of unlicensed actors in the digital lending industry, the Reserve Bank of India (RBI) suggested the establishment of a public registry for digital lending applications (DLAs) during its third committee meeting every six months for FY24-25.

StartupTalkyNitin Konde

Lendingkart - Mission and Vision

The mission of Lendingkart Group is to provide enterprises with easy access to working capital financing; therefore, they won't have to worry about the gaps in their cash flows and can concentrate on their business.

Lendingkart vision is to build a business that can generate a greater Return on Equity (ROE) while still being sustainable.

Lendingkart - Name, Tagline, and Logo

Name - Lendingkart

The Lendingkart tagline says, “Simplifying MSME Finance.”

Lendingkart - Business Model

Lendingkart distinguishes itself through a business model centered around the customer, prioritizing minimal effort for business owners seeking financing. This customer-centric approach aims to alleviate financial burdens, enabling entrepreneurs to focus on the growth of their enterprises rather than being weighed down by constant money concerns. As the favored financing option for small and medium business owners in India, Lendingkart's emphasis on expedited procedures, rapid accessibility, and commitment to facilitating business expansion sets it apart in the dynamic landscape of Indian businesses.

The distinctive attributes of Lendingkart, including a streamlined process and quick access to funds, resonate with businesses seeking financial solutions. This commitment to a hassle-free experience and a clear focus on business expansion further solidifies Lendingkart's position as the preferred financial choice, addressing the evolving needs of entrepreneurs in the dynamic Indian business environment.

Lendingkart - Revenue Model

Lendingkart, specializing in serving small and medium businesses, predominantly garners revenue through the interest income generated from the loans it extends. This primary income source is driven by the interest charged on the financial support provided to businesses seeking capital. In addition to interest income, Lendingkart diversifies its revenue channels through commissions, advertising, and gains on the assignment of loans.

A noteworthy contributor to commission income is the innovative 2gthr program, which stands for "together." Through 2gthr, Lendingkart collaborates with both banks and non-banking financial corporations (NBFCs) to offer co-lending services, providing an additional avenue for revenue generation and fostering collaborative financial solutions.

Lendingkart - Challenges Faced

Every business has particular difficulties, and Lendingkart is no exception. Throughout its assistance of Micro, Small, and Medium-Sized Enterprises (MSMEs), Lendingkart has faced unique challenges. Among these is the susceptibility of these businesses to changes in the market, which can have an impact on revenue even on modest drops in sales. Since many MSMEs do not have official financial records or a credit history, evaluating creditworthiness becomes difficult.

Longer loan disbursement periods and the paperwork associated with loan applications contribute to the complexity. Geographical restrictions make quick loan approval difficult because the majority of MSMEs are located in rural areas. Lendingkart's objective to effectively help MSMEs is further complicated by language difficulties, with businesses more comfortable speaking in regional languages, the lack of collateral or guarantees, and high interest rates from gray market players.

Lunia, in 2022, said, “Even today, the credit process in traditional FIs takes months as credit evaluations are hampered due to the absence of crucial data points. When we started in 2014, MSMEs had very few resources, and the ones that existed should have done some hand-holding for business owners due to the complicated nature of these transactions. But no one did it."

Lendingkart - Funding and Investors

Lendingkart has raised 18 rounds of funding to date, which equals $325.7 million.

Some of the funding details are:

In 2024, Temasek's Fullerton picks up a controlling stake in Lendingkart for INR 252 cr.

Lendingkart - Investments

On April 5, 2019, Lendingkart made a strategic investment in Federal Transport Private Limited through a Debt Financing Round.

Lendingkart - Mergers and Acquisitions

Lendingkart has expanded its portfolio through strategic acquisitions, with the recent addition being Upwards Fintech on February 8, 2023, involving a substantial amount of INR 100 crore. Prior to this, the company acquired Kountmoney on October 18, 2016, further enhancing its position in the financial landscape.

Lendingkart - Growth

Lendingkart has been founded in 2014 in Ahmedabad. The company first started with a single office in Ahmedabad, it has gradually set up several other offices as well, in Bengaluru, Gurgaon, Mumbai, Hyderabad, and is currently also offering pan-India services. All of these directly indicate that Lendingkart is a growing company.

It has also cultivated a robust presence, extending its reach across an extensive network of 14,700+ pin codes within 4,100+ cities and towns. With a commendable track record, the company has facilitated the successful disbursement of 3,00,000+ loans, totaling an impressive INR 20,000+ crore to date. This widespread reach underscores Lendingkart's dedication to delivering financial solutions to businesses in both urban and rural areas, establishing itself as a key player in the financial landscape.

Financials

Expenses

Lendingkart total expenses has increased from INR 684.4 crore in FY23 to INR 1022.7 crore in FY24.

EBITDA

Lendingkart - Advertisements and Social Media Campaigns

Campaigns from Lendingkart, which feature Rajkummar Rao as their brand ambassador, cleverly illustrate the difficulties that companies may have in the absence of enough funding. TILT Brand Solutions cleverly narrates the story using the term 'atakna,' which means becoming stuck, in their concept.

Lendingkart offers ways to increase companies' access to capital by utilizing data and technology. These minimalist short films are meant to be easily understood, and Rajkummar Rao's magnetic presence lends a certain something more.

Lendingkart - Awards and Achievements

Lendingkart has earned several awards and achievements. Here are the details:

• 2020: Dream Company to Work For
  Acknowledged by World BFSI, affirming our dedication to providing an exceptional work environment.
• 2020: Most Influential Business Leader
  Honored by World BFSI, recognizing the leadership prowess of our visionary founder.
• 2020: Digital Technology Award
  Secured at the Business Leader of the Year Awards, underscoring our technological prowess.
• 2019: Best Lending Tech of the Year
  Conferred at the 9th India Digital Awards, a testament to our cutting-edge lending technology.
• 2019: Best Fintech Award
  Received in the Lending category from KPMG and Business Today, highlighting our fintech excellence.
• 2019: SIDBI ET India MSE Award
  Earned in the Fintech Lender's category at SIDBI-ET India MSE Awards, reinforcing our impact in the industry.
• 2019: Best Lending Tech of the Year
  Recognized by ABP News BFSI Awards, showcasing our continued excellence in lending technology.
• 2019: Fintech Personality of the Year
  Acknowledged by ABP News BFSI Awards, honoring our leadership in the fintech space.
• 2018: Dream Companies to Work For
  Positioned in the financial services category by Times Ascent, reflecting our commitment to a fulfilling workplace.
• 2018: Deal of the Year
  Acknowledged by APAC Insider, recognizing our impactful business transactions.
• 2017: Startup of the Year
  Conferred at Express IT Awards 2017 organized by Financial Express, a testament to our groundbreaking startup journey.
• 2016 - 2019: Global Fintech100 & Global Top 50 Established Fintech Firms
  Recognized consistently by KPMG and H2 Ventures, solidifying our global standing in the fintech domain.

Lendingkart - Competitors

Lendingkart Technologies operates as a fintech company in the working capital space. Lendingkart's top competitors working in the same domain include ventures like:

• InCred
• Indifi
• Aye
• Reink Media Group
• Advanced Credit Technologies

Top 7 Lending Companies in India 2021 | Lending Startups

Aye Finance’s MD shares his insights & opinions on a few companies that made digital lending easy and hassle-free amongst various fintech companies.

StartupTalkyJeenal Jain

Lendingkart - Future Plans

According to a June 2023 news report, Lendingkart has set an ambitious goal for the fiscal year 2023–2024. Lendingkart Group's visionary CEO and founder, Harshvardhan Lunia, is full of confidence that the company's main operation would cross a significant milestone—that of INR 6,000 crore. This estimate represents a significant improvement above the INR 4,000 crore distributed during the fiscal year (FY23). Lendingkart's dedication to growth and innovation highlights its crucial role in transforming the financial technology industry.

FAQs

What is Lendingkart?

Lendingkart is an Ahmedabad-based online financing company, which helps SME attain short-term working capital loans.

Where are the Lendingkart headquarters?

Lendingkart headquarters is in Ahmedabad, Gujarat, India.

Who are the founders of Lendingkart?

Harshvardhan Lunia and Mukul Sachan are the founders of Lendingkart.