Lendingkart has received $7.8 million in loan capital for small businesses in India.
The Bangalore-based financial tech company will use debt financing from Yes Bank to expand its small-business lending across India.
Lendingkart’s software underwrites small-business credit risk to enable small loans of around $6,000. It has a lent to businesses in 650 Indian cities.
The Yes Bank financing could help lower Lendingkart’s cost of capital in comparison to non-banking financial institutions. “It is a natural progression to move more and more towards banks,” Lendingkart’s Harshvardhan Lunia says.
Lendingkart has raised close to $40 million in debt since 2014, along with $30 million in equity.