Lendingkart’s revenue grows 175% in FY 19, disbursed INR 38 billion in 5 yrs

Harsh

Harshvardhan Lunia, Founder, Lendingkart

Leading online lender Lendingkart Financial Limited has disbursed over 70,000 loans worth INR 38 billion to MSMEs since it started operations in 2014, the company said.  It also said that it witnessed a 175 percent revenue growth and a 150 percent customer growth in the financial year 2019 on the back of its focus on the MSME segment.  The non-deposit taking NBFC  said that it has so far disbursed collateral-free loans to over 60,000 MSMEs in the new and emerging markets across India.

Harshvardhan Lunia, Co-founder & CEO, Lendingkart said in a statement that,  “For a majority of small and medium enterprises, non-formal sources still serve as the only means to acquire funds due to perceived credit risks in financing small enterprises. At Lendingkart, our goal has always been to provide working capital to India’s critical small and medium enterprises, promote financial inclusivity and accessibility through our digital channels. We are poised to achieve manifold growth in loan book in the next five years, service additional business clusters and increase the total share of lending to MSMEs.”

In line with its vision of bringing small borrowers into the financial mainstream, Lendingkart has seen around 200% average year on year increase in the number of loans disbursed across various business sectors. 83% of the total loan applicants of Lendingkart come from non-metro cities in India, with 90% of the borrowers being in the age group of 18-45 years. While North India leads the total amount of loans disbursed with 35%, it is closely followed by West with 29%, South with 26% and East with 10%, the company said.

“Our ability to acquire and service MSME customers at the remotest places in India using data is our biggest strength. We have developed a robust digital origination system and have industry-leading analytics in place which gives us a clear edge in this market. By leveraging technology to assess creditworthiness, we want to help entrepreneurs launch, sustain and expand their businesses. Our efforts in digital marketing are helping us reach out to our target audience. Our website receives an average of a million visits a month and around 300,000 applications a month just through digital marketing,” added Paroma Chatterjee, Chief Business Officer, Lendingkart.

Lendingkart caters to MSMEs with little or no credit history at all and provides short term working capital loans with an average ticket size of INR 500,000 with minimal paperwork with within 72 hours. The company analyses thousands of data points from various sources and leverages robust in-house technology tools based on big data analytics and machine learning algorithms to evaluate creditworthiness.

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