FinTech Startup Raises $10M To Lessen SME Financing Risk

Assessing the risk of SME borrowers can be tricky business. There is a massively high rate of failure for startups, but the growth potential for these new companies can yield large returns.

To make this risk assessment a bit more simple, one FinTech startup has launched a platform that uses more up-to-date information and Big Data to discover the potential for a small business borrower to be profitable.

Reports on Wednesday (July 8) said India-based Lendingkart has just secured $10 million from investors to strengthen its SME working capital finance services. Venture capitalists Saama Capital, Mayfield and others led the backing.

Lendingkart reportedly uses a company’s current year cash flow figures rather than old records like previous income tax returns or financial statements to analyze risk. The company utilizes Big Data analytics to evaluate an applicant’s current business and finances. So far, since its founding last year, Lendingkart has facilitated about 70 small business loans a month, charging about 2 percent interest for each loan.

India’s alternative lending space is not as robust as other parts of the world, but a robust startup sector and thriving eCommerce innovation has led to growing momentum to support small businesses in need of capital.

The State Bank of India recently reached a deal with several eCommerce giants, including Amazon and PayPal, to facilitate financing to small businesses operating on the platforms. Data from the end of last year found that SBI’s ratio of non-performing assets reached as high as 8.05 percent for small business borrowers.

[vc_row full_width=”” parallax=”” parallax_image=””][vc_column width=”1/1″][/vc_column][/vc_row][vc_row full_width=”” parallax=”” parallax_image=””][vc_column width=”1/1″][vc_separator color=”grey” align=”align_center” style=”” border_width=”” el_width=””][vc_single_image image=”150712″ alignment=”center” style=”vc_box_shadow_3d” border_color=”grey” img_link_large=”” img_link_target=”_blank” css_animation=”left-to-right” img_size=”full” link=”http://www.pymnts.com/tag/b2b-payments/”][vc_column_text]

To check out what else is HOT in B2B, click here.

[/vc_column_text][vc_separator color=”grey” align=”align_center” style=”” border_width=”” el_width=””][/vc_column][/vc_row]