Lendingkart, an online platform for lending to small businesses and entrepreneurs, has raised debt funding worth Rs 50 crore from Yes Bank Ltd. The company said that this is the first step towards eventually shifting from non-banking financial companies (NBFCs), who provide loans at a higher rate, to banks. According to this Livemint report, the company had previously raised an undisclosed amount in debt from DCB Bank Ltd, though it doesn’t specify when this deal took place.
It’s worth noting that digital money remittance service MoneyOnMobile’s Indian subsidiary, My Mobile Payments Limited (MMPL) had secured $1.5 million in unsecured credit from YES Bank, in December last year.
In June last year, Lendingkart had raised Rs 205 crore ($32 million) in a series B round of funding led by Bertelsmann India Investments (BII) and Darrin Capital Management, with participation from existing investors Mayfield India, Saama Capital and India Quotient. Of this, $20 million was raised through equity sale and remaining $12 million through debt financing.
Lendingkart 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 three days. The loans are provided at an interest rate of 16-24%. It adds that it requires minimum documentation, especially for e-commerce vendors, and businesses and sellers are not required to provide collateral or net worth details. The company claims it has signed off on over 11,000 loans to more than 7500 SMEs till date. Lendingkart has tie-ups with CCAvenue, Paytm, Craftsvilla and Flipkart to provide merchants of these platforms financial assistance via loans.
KountMoney acqui-hire: In October last year, Lendingkart had acqui-hired KountMoney, an online lending marketplace for personal loans, to add to its data analytics and technology capabilities. Following the deal, KountMoney co-founders Deepak Modak, Gaurav Somani, Abhishek Periwal and Abhi Ranjan joined Lendingkart. KountMoney offers consumers personal loans, gold loans, home loans, education loans and loans against property.
Recent funding in loan companies
– In February this year, Bharti Airtel acquired a stake in Seynse Technologies, a fintech company, through its subsidiary Bharti Airtel Services. Seynse runs a digital lending platform called Loan Singh, which lets users avail loans as well as lend them. The platform asks for users to keep account statements, PAN card and Aadhaar at hand when looking for a loan, to speed up the process. It claims to disburse loans within 48 hours of application. It’s worth noting that Airtel also runs a payments bank, and RBI guidelines mandate that payments bank cannot set up subsidiaries to undertake non-banking financial services activities.
– Lending platform for salaried professionals, LoanTap raised $ 3 million in a Series A round of funding from HNIs including Abhishek Pandey and Jaysukh Sapra, in August last year. The funds were to be used to upgrade the company’s technology platform and for expanding operations in Pune and Bangalore, besides being used for lending.
– Loan marketplace Deal4loans raised $15 million from Franklin Templeton, in July last year. The company aggregates, markets and facilitates the sale of loan products and credit offerings from banks and financial institutions. It planned to ustilise the funds to ramp up existing technology.
– In May last year, online lending platform Capital Float raised $25 million in a series B round of funding led by Creation Investments Capital Management, LLC, with significant participation from existing investors SAIF Partners, Sequoia India, and Aspada. Later in the year, in December, Via.com tied-up with Capital Float to provide the over 5,000 travel agents listed on the site with collateral-free working capital loans of up to Rs 25 lakh.