The fintech obtained the capital through external commercial borrowing from a fund run by BlueOrchard. The Harshvardhan Lunia-led firm stated that the money was received through Non-Convertible Debentures (NCDs) listed on the India International Exchange (IFSC) in GIFT City. BlueOrchard has been an active investor in the Indian lending industry, supporting Kinara Capital, Varthana, and AVIOM Housing Finance earlier this year.
Fintech firm Lendingkart has received $10 million (INR 83.5 crore) through external commercial borrowing from a fund managed by Swiss impact investor BlueOrchard.
Lendingkart will use the newly generated funds to expand its lending activities to MSMES.
According to Lendingkart, the non-convertible debentures (NCDs) have been listed on the India International Exchange (IFSC) in GIFT City. It also claimed to be one of the first few issuers to use a centralized depository to generate ISINs for foreign currency bonds.
“At Lendingkart, we regard this investment as proof of our constant commitment to aiding Indian MSMEs. “It validates our mission to democratise access to finance and promote entrepreneurship,” stated founder and CEO Harshvardhan Lunia.
Lunia founded Lendingkart in 2014 to provide loans to micro, small, and medium-sized organizations (MSMEs). The startup’s major sources of revenue are interest income and financial services offers. It claims to have disbursed 2.8 lakh loans totaling more than $1.8 billion across India since its establishment.
It competes against companies such as Incred, Yubi, Indifi, and Kinara Capital, among others.
Kinara Capital recently secured $24.4 million in loans from the Blue Orchard Microfinance Fund and the Impact Investment Exchange (IIX).
It is worth noting that BlueOrchard has been growing its lending portfolio for startups this year through the BlueOrchard Microfinance Fund.
Blue Orchard also invested in home loan provider AVIOM Housing Finance Corporation (AVIOM HFC) and education-focused NBFC Varthana last month.
Meanwhile, in June of last year, Lendingkart raised $24 million in loans from EvolutionX loans Capital. It stated at the time that the new capital would be used to boost growth and income in fiscal year 23.
The Ahmedabad-based company became profitable in the fiscal year 2022-23 (FY23), with a consolidated net profit of INR 118.8 Cr compared to a net loss of INR 203.4 Cr in the previous fiscal, thanks to a significant decrease in its spending on impairment losses on financial assets, loans, and advances.
Lendingkart’s operating revenue increased by 29.5% this fiscal year to INR 798.4 crore, up from INR 616.4 crore in FY22.
