FMO supports SMEs in India
Lendingkart Finance raises INR 30 crore in NCDs
Lendingkart Finance Limited today announced that it has raised INR 30 crore in non-convertible debentures from FMO. The investment has been made through MASSIF, the financial inclusion fund that FMO manages on behalf of the Dutch government. This new influx of debt funds will be used towards growing the loan book and expanding the reach of Lendingkart Finance across SME industries in different parts of the country. As the company expands its reach to over 950 cities across India, these funds, which are Lendingkart Finance’s first-ever foreign debt transactions, will come in handy to widen its offerings to SMEs country-wide. As of today, Lendingkart Finance has disbursed over 20,000 loans to more than 13,000 SMEs across 23 diverse sectors.
Speaking on the latest development, Harshvardhan Lunia, CEO and Co-founder, Lendingkart Technologies said, “With a committed portfolio of €9.8 billion, FMO is one of the larger bilateral private sector development banks globally and we are elated to welcome them on board. We are looking to build a long-term relationship with them that will help us achieve our growth goals going ahead. This being our first foreign debt raise, will open avenues for Lendingkart Finance’s future foreign debt funding as well. It is quite inspiring to see the emphasis that FMO lays on improving systems and processes for the borrower community and we are certain to imbibe some of their learning. These freshly raised capital from our first financial inclusion and impact focused global fund, will be utilized to refuel our loan books that will allow us to cater to a wider range of SMEs who need working capital finance.”