Indian startup Lendingkart announced that it has raised $2.95 million in new funding from Sistema Asia Fund.
The investment comes days after the company raised $30 million in a Series D financing round led by existing investors including Fullerton Financial Holdings, Bertelsmann India Investments and India Quotient. The total funds raised by LendkingKart is now at $146 million.
The funds will be used to expand the company’s lending base, build technology and boost analytics capabilities.
Launched in 2014 by Harshvardhan Lunia and Mukul Sachan, Lendingkart offers loans to micro, small and medium-sized businesses, issuing more than 60,000 loans to more than 55,000 SMBs in 1,300 cities across India so far.
“Harsh and team continue to impress us with their energy, passion and tenacity in scaling Lendingkart to greater heights. Even during these challenging times, Lendingkart continues to grow and perform impressively across all metrics and we are privileged to partner with the company in their journey,” Dhruv Kapoor, partner, Sistema Asia Capital said, according to Inc 42.
“Micro and small businesses represent a vibrant yet underserved segment of the Indian economy. The support of all of our customers, investors and employees is empowering us to build the leading financial services platform for this segment,” Harshvardhan Lunia, co-founder and managing director of Lendingkart, said last week.
Lendingkart reported a three-fold increase in its consolidated revenue to $13.1 million for the fiscal year 2018, but its total expenses almost doubled, which led to widening losses for the company.
One of Lendingkart’s main rivals is Gurgaon-based Indifi, which raised a $21.32 million (Rs 145 crore) Series C round led by CDC Group earlier this week. As part of the transaction, CDC Group received 71,08,870 Series C CCPS and 100 equity shares each at a price of Rs 140.67, adding up to an investment worth $14.71 million (Rs 100 crore) in Indifi.