EvolutionX Backs Lendingkart with Rs 200 Crore Debt Funding, Accelerating Growth in India's Fintech Landscape

Lendingkart, a prominent fintech startup in India, has successfully secured Rs 200 crore in long-term debt funding from EvolutionX Debt Capital, a renowned financing platform. This marks EvolutionX’s third investment in the growth stage debt financing arena, following its previous investments in API Holdings (PharmEasy) and Udaan.

Lendingkart operates through its NBFC arm, Lendingkart Finance Limited, and a subsidiary known as Lendingkart Technologies, which offers co-lending Software-as-a-Service (SaaS) solutions. The freshly acquired funds will be utilized to introduce new products, including credit cards tailored for Micro, Small, and Medium Enterprises (MSMEs), personal loans for self-employed individuals, and gold loans. The company expressed its intentions through an official statement.

During the fiscal year 2022-23, Lendingkart, with its focus on supporting MSMEs, achieved a notable profit of Rs 120 crore. This represents a remarkable 44% growth in disbursements compared to the previous year. Moreover, the company recently expanded its range of services through the acquisition of Upwards, a digital lending platform, for a substantial sum of Rs 100 crore.

Harshvardhan Lunia, the Founder and CEO of Lendingkart Group, expressed his pride in the company’s status as one of the few profitable fintech firms operating at scale in India. He emphasized their dedication to leveraging efficient and robust technology to support the underserved MSME sector.

EvolutionX Debt Capital, supported by prominent entities such as Temasek and DBS, has now made its third investment, becoming the first of its kind in the fintech domain. In early November 2022, EvolutionX made its debut investment by backing API Holdings, the parent company of popular brand PharmEasy. This was followed by a subsequent investment in Udaan, a leading B2B e-commerce platform.

Rahul Shah, Partner of EvolutionX Debt Capital, expressed optimism about the potential for fintech players in India’s vast yet underserved MSME credit market. He believes that Lendingkart, with its cutting-edge technology stack encompassing customer acquisition, credit underwriting and collection, as well as its innovative product customization capabilities, will continue to dominate the market and bridge the funding gap for MSMEs.

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