News Digest

27 December 2017
Lendingkart raises Rs25 crore debt from State Bank

Lendingkart has raised Rs25 crore in debt from State Bank of India (SBI), a first for the country's largest public sector lender vis-a-vis a digital lending start-up. In a statement, Lendingkart said the Rs25 crore loan is in the form of cash credit facility which essentially allows the company to draw the amount over separate tranches as and when it needs it. SBI's investment captures the push by banks across India—not only those in the private sector but also those in the public sector—to reach more borrowers by backing technology-enabled lending companies. This year, Lendingkart got two private sector banks—Kotak Mahindra Bank Ltd and Yes Bank Ltd—on board as lenders. “We feel extremely privileged to have partnered with India's largest bank which also shares the same vision of supporting the unbanked SME (small and medium enterprise) sector. SBI, being one of the oldest and largest banks, has played a critical role in shaping India's financial landscape for the last century,” said Harshvardhan Lunia, co-founder and chief executive officer at Lendingkart. “With the funds raised, we will further grow our loan books, expanding our reach to many more under-served SMEs (small and medium enterprises,” he added. Lendingkart represents a group of start-ups that includes Capital Float, Neogrowth and IndiaLends, that offer small ticket-size loans, mostly unsecured credit, to borrowers with limited credit history.

Read More