‘At the fingertips of entrepreneurs’
Lendingkart was founded by Harshvardhan Lunia and Mukul Sachan in 2014 with a mission ‘to make working capital finance available at the fingertips of entrepreneurs, so that they can focus on business instead of worrying about the gaps in their cash flows’.
Through a digital lending platform, the company provides easy to access working capital loans to micro, small and medium-sized enterprises (MSMEs) across India. This sector represents nearly 58 million businesses and accounts for 45% of the country’s industrial output but typically faces difficulties in accessing finance. Lendingkart aims to address this finance gap; many of its clients are first-time clients.
The company has fully digitalised the entire loan cycle – from origination to credit analysis, disbursement, and collection – and uses technology and analytics tools to assess the creditworthiness of small businesses rapidly and accurately. In addition to lending from its own balance sheet, Lendingkart partners with several banks and institutional lenders via co-lending and co-origination through the lending platform.
Since its inception, Lendingkart has evaluated nearly half a million applications, disbursing over 140,000 loans to more than 120,000 MSMEs in over 4,000 cities and towns across all states and union territories of India. To date, it has disbursed over a billion US dollars’ worth of loans.
Building an impactful fintech portfolio
Financial technology has taken centre stage in the financial inclusion industry. Not only are fintech initiatives mushrooming, the amount of investment activity is also increasing, including those by impact investors such as Triodos Investment Management. Find out more about our approach and portfolio in the whitepaper Investing in fintech for greater financial inclusion.
Triodos Microfinance Fund and Triodos Fair Share Fund have provided a EUR 6 million loan to Lendingkart to increase its outreach, together with GMO LLC, a leading company in the payment industry, which provided a EUR 3 million loan.
Harshvardhan Lunia, CEO and founder at Lendingkart: “The newly infused funds will enable us to disburse working capital loans to underserved MSME customers through our platform. Additionally, it will also help us in increasing our reach and service more pin codes across the country. It is our constant endeavor to empower the MSMEs and small businesses and we will continue to bridge the financial gaps for small businesses.”
Learn more about our investment activities in financial inclusion.