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Lendingkart Raises $12M in Debt and $1M in Equity from Stride Ventures

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Ahmedabad-based digital lending platform Lendingkart has secured a significant boost in funding, announcing Rs 100 crore ($12 million) in debt and Rs 8 crore (almost $1 million) in equity from Stride Ventures. This marks the second major debt closure for the company in the past year, signaling a robust financial trajectory. This news is first reported by Entrackr.

The latest development comes on the heels of a board resolution passed by Lendingkart, authorizing the issuance of 10,000 non-convertible debentures and 454 Series D5 CCPS, aiming to raise Rs 108 crore or $13 million, as disclosed in regulatory filings accessed from the RoC.

With Temasek among its backers, Lendingkart has amassed Rs 318 crore ($38 million) in debt to date, with the latest tranche to be received in two installments of Rs 50 crore ($6 million) each, carrying a competitive coupon rate of 14% per annum.

According to insights from startup data intelligence platform TheKredible, Lendingkart’s post-allotment valuation stands impressively at around $690 million, underscoring its growing prominence in the digital lending landscape.

Notably, just last month, Lendingkart secured an additional $10 million through external commercial borrowing (ECBs) from a fund managed by BlueOrchard, further fortifying its financial position.

Cumulatively, Lendingkart has attracted Rs 1,050 crore ($126 million) in equity capital from a diverse pool of investors including Fullerton, Bertelsmann, Mayfield India, Saama Capital, Sistema Asia, and India Quotient.

With a focus on serving the MSME sector, Lendingkart disburses loans ranging from Rs 5 lakh to Rs 6 lakh to business owners, having facilitated over Rs 18,700 crore in loans to more than 300,000 businesses across 4,100 cities, as per its website.

Financially, Lendingkart demonstrated robust performance in FY23, with a notable 33.4% growth in revenue from operations, amounting to Rs 858 crore. Additionally, the firm reported a commendable Rs 119 crore in profit during the same period. Annual financial results for FY24 are pending.

In light of its substantial growth trajectory, media reports indicate that Lendingkart is gearing up for an initial public offering (IPO) by next year, with ambitions to surpass Rs 10,000 crore in assets under management before making its public debut.