Fullerton Financial Holdings Acquires Controlling Stake in Lendingkart for INR 252 Cr This capital infusion aims to bolster Lendingkart's technology capabilities and expand its reach into underserved markets across India.
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Lendingkart, a digital lending platform dedicated to small and medium enterprises (SMEs), has announced a significant strategic move: Fullerton Financial Holdings (FFH), a subsidiary of Singapore's Temasek, is acquiring a controlling stake in the company for INR 252 crore (approximately USD 30 million).
This capital infusion aims to bolster Lendingkart's technology capabilities and expand its reach into underserved markets across India.
FFH, which previously held a 38.1% stake in Lendingkart, is set to enhance the platform's ability to cater to the micro, small, and medium enterprises (MSMEs) lending sector in India.
Hong Ping Yeo, CEO of FFH, said, "Our investments in Lendingkart are a testament to our continued belief that well-governed, scalable franchises can bring significant value to small businesses."
This announcement follows reports of Lendingkart facing a cash crisis and potential valuation cuts due to pressures in the unsecured loan market. Despite these challenges, Lendingkart's Founder and Managing Director, Harshvardhan Lunia, views the investment as a pivotal moment for the company. He remarked, "This investment represents a vote of confidence in Lendingkart's ability to transform the MSME lending landscape."
Since its inception in 2014, Lendingkart has disbursed over INR 18,700 crore to more than 300,000 businesses across 4,100 cities, with an average loan ticket size ranging from INR 5 lakh to INR 6 lakh.
The fintech firm reported a profit after tax of INR 118.81 crore in FY23, marking a significant turnaround from a loss of INR 203.36 crore the previous year.
