VCs commit $11m to India's Lendingkart

This is Lendingkart’s first investment from Sistema. Existing backers Bertelsmann India Investment, Mayfield India, Saama Capital, India Quotient and Darrin Capital Management also participated. The company described the investment as part of a Series C round that could reach up to $80 million in size.

Lendingkart provides financing to small and medium-sized enterprises (SMEs) in India, aiming to attract borrowers with its speed in assessing creditworthiness and approving loans. It also seeks to make applying for financing more convenient by offering access to its system through both web and mobile apps. The company will use the new capital to expand its loan book and improve its underlying technology and analytics software.

Since its founding in 2014, Lendingkart has provided loans to more than 8,000 small businesses in 650 cities across India. Bertelsmann led its $32 million Series B round last year, accompanied by Darrin, Mayfield, Saama and India Quotient. Saama and Mayfield also participated in the company’s $10 million Series A round in 2015, which followed a commitment of an undisclosed amount by India Quotient the same year.

In addition, Lendingkart’s non-banking financial company (NBFC) Lendingkart Finance raised a INR500 million loan from domestic commercial lender Yes Bank earlier this year. The company sought the loan primarily to increase its working capital.

Lendingkart’s domestic competitors include Capital Float, a similar online SME lending platform that raised a $45 million Series C round last month led by Ribbit Capital. SAIF Partners, Sequoia Capital and Creation Investments are also among Capital Float’s backers.

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• Topics
• South Asia
• Financials
• Expansion
• India
• Bertelsmann Asia Investments
• Saama Capital
• Mayfield
• Financial Services
• Growth capital