by Aakriti Shrivastava
Lendingkart Finance Limited has raised Rs 30 crore debt funding in the form of NCDs or non-convertible debentures, which are unsecured bonds, from Dutch development bank Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO). The firm plans to use the fresh funds for increasing their loan book and expanding its reach in small and medium enterprises (SME) in India, it said in a press release.
Lendingkart is a non-banking finance company (NBFC) that provides small business loans to SMEs and it is common for lending companies to raise debt funding to replenish their loan books. For instance, Lendingkart Finance Limited has raised $10.51 million (~Rs 70 Crore) in form equity funding in September 2017. It raised $10 million in debt funding in August and another Rs 50 crore of debt fund from Yes Bank and another $12 million debt funding during its B round in June.
It is to be noted that debt funds are different from equity funds. A debt fund may invest in short-term or long-term bonds, securitized products, money market instruments or floating rate debt. On the other hand, an equity fund is a mutual fund that invests principally in company stocks.
Lendingkart provides loans ranging from Rs 1 lakh to Rs 40 lakh on its platform and claims to sanctioned them in a day and disbursed within three days. The loans attract an interest rate of 16-24%. It claims to have disbursed over 20,000 loans to more than 13,000 SMEs across 23 sectors.
Lendingkart uses in-house tools based on big data analytics and machine learning algorithms to evaluate its client’s creditworthiness. It claims to use 5,000 data variables to assess financial health, comparative market performance, social reliability & compliance of the loanee.
In August 2017, Lendingkart appointed Mukesh Singh as its new chief technology officer (CTO) to drive strategy and execution of technology vertical of the company. In 2016, Lendingkart acqui-hired KountMoney, an online lending marketplace for personal loans, to add to its data analytics and technology capabilities.