Online lending platform for entrepreneurs and small businesses Lendingkart has raised $10 million from Saama Capital, Mayfield Fund, and individual investors Ashvin Chadha and Shailesh Mehta. The company will use the funding for capacity building, its technology platform and adding to its team. It will also use the funds for an AI big data scoring system.
Founded by Harshvardhan Lunia and Mukul Sachan last year, Lendingkart had raised seed funding worth Rs 3.8 crore from Ashish Goenka, Rhythm Ventures, Saama Capital, Ashvin Chadha, Sandip Chintawar, Shailesh Mehta and India Quotient earlier this year. Based in Ahmedabad and Bangalore, the company operates pan India.
In September last year, Flipkart Marketplace had tied up with Capital Float and Lendingkart to make loans available for its sellers on its platform. The Flipkart Marketplace mail directed sellers to fill out a simple ‘expression of interest’ form, which required sellers to indicate the expected loan amount (Rs 5 lakh to over Rs 50 lakh), select the preferred loan partner, and provide details about how they would be using the loan – to buy inventory, to improve infrastructure, to add new brands or any other reason. Sellers also needed to sign a formal agreement. Following this, either Capital Float or Lendingkart would get in touch with the seller to process the loan and provide them further details like interest rates.
Lendingkart, which operates as a non-banking finance company (NBFC), provides loans ranging from Rs 1 lakh to Rs 40 lakh on its platform and claims that they are sanctioned in a day and disbursed in two days. It claims that it requires minimum documentation, especially for ecommerce vendors, and businesses and sellers are not required to provide collateral or net worth details. A Techportal report claims that Lendingkart disburses around 70 short term loans every month, for which it charges around 1.5-2% interest per month.
Funding on the Online Credit Lenders space
-Late last month, online credit management service CreditMantri had raised Series A funding worth $2.5 million from IDG Ventures, Elevar Equity and Accion Venture Lab. CreditMantri was to use the funds for platform development, hiring and build a user base. CreditMantri was founded by R Sudarshan, Gowri Mukherjee and Punja in 2012.
– In the same month, ecommerce marketplace ShopClues launched a financing platform for its vendors called Capital Wings, in order to help them raise funds to expand their business online. The company partnered with digital SME finance company Capital Float to offer working capital loans to small and medium businesses at low interest rates and without any collateral.
– In February, Bangalore-based digital SME finance company Capital Float had raised $13 million in a round of funding led by SAIF Partners and Sequoia Capital, with participation from existing investor Aspada Investment. The company was to use the funds to expand its technology, scale up nationally and to launch new loan products.