India continues its race to adopt digital payments at a great pace and scale. Thus, India’s startups are quickly building solutions to bring financial services to businesses. Besides, they are, up to these days, are successful to get significant capital. Their capital comes from local investors and global giants who want to scale their ambition. As one of those startups, Lendingkart, raises $30M recently.
India has many startups that offer help for micro and medium-sized enterprises to access working capital. One of them is Lendingkart. Lendingkart, raises $30 million as part of its Series D financing round, it said on Friday.
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The got the capital form Fullerton Financial Holdings, Bertelsmann India Investments, and India Quotient. Until now, the five-year-old, Bangalore-based startup has raised $143 million.
Lendingkart
Lendingkart is a New Delhi-based platform. It allows businesses to apply for loans online bypassing banks and other traditional financial institutions. Lendingkart’s algorithms use 1,500 data points to score credit application. The site claims that its application process takes just 15 minutes, with most loans approved in a few hours and disbursed within three working days.
Lendingkart has issued over 60,000 loans to more than 55,000 small and medium-sized enterprises. Its service is accessible in 1,300 cities across India.
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The startup said that it will use the fresh capital to widen its lending range and get new clients. Currently, the startup has a limited option to get capital. Since the traditional banks find them too risky to lend money.
Micro and small businesses show great support for the India economy. However, they remain an underserved segment of the country’s economy.
Recently, Lendingkart competes with a handful of businesses. That includes Gurgaon-based Indifi, Bangalore-based Zest Money, Five Star Finance, Capital Float and, in some capacity, and Drip Capital. Gurgaon-based Indifi has raised $ 21 million earlier this week, meanwhile Drip Capital has raised $ 25.
