Lendingkart Finance Ltd said on Thursday it has raised $10 million (₹67 crore) in debt from Kotak Mahindra Bank, Aditya Birla Financial Services and other financial institutions.
A wholly-owned subsidiary of Lendingkart Group, Lendingkart Finance is a non-deposit taking NBFC offering small business loans to SMEs.
As the company expands its reach to over 700 cities nationwide, these funds will come in handy to re-stock the loan book. To date, Lendingkart Finance has disbursed over 12,000 loans to more than 9,500 SMEs across 23 sectors.
Harshvardhan Lunia, CEO and co-founder of Lendingkart, said: “For Lendingkart Finance, the influx of capital at strategic intervals is the key driver to promote financial inclusivity amongst SMEs in India. We are confident that our relationship with these companies will help us collectively work towards empowering SMEs through seamless availability of working capital.”
Manish Kothari, Senior EVP & Business Head, Corporate Banking, Kotak Mahindra Bank , said: “We at Kotak Mahindra believe that each start-up business has its own unique set of requirements linked to their business model and hence, understanding the nature of business and structuring the solution around it is essential. We believe Lendingkart has a unique and efficient proposition to finance customers — largely in a space which is not as effectively addressed by most banks.”
Lendingkart is present across 29 States and 7 Union Territories, and claims to offer quick and easy collateral-free loans with minimal paperwork.