Sistema Asia Fund supports expansion of innovative Indian fintech lender

23/08/2019

LendingKart is an Indian lender that issues working capital loans to micro, small and medium sized enterprises (MSMEs). The company leverages proprietary technology based on big data analysis to evaluate borrowers' creditworthiness. Since its inception, LendingKart has evaluated nearly half a million loan applications and disbursed more than 60,000 loans to more than 55,000 MSMEs in more than 1,300 cities across India. The company has the largest geographical footprint of any non-banking financial company (NBFC) in the country. 

Sistema venture capital fund Sistema Asia Fund (SAF) wrote the first cheque to LendingKart in 2017, followed on in 2018 and this month led an additional funding round that brings total equity raised by LendingKart to USD 146 million. The funds from the latest round will be used to expand the lending base, build technology and strengthen analytics capabilities. Along with SAF, LendingKart’s investors include Fullerton Financial Holdings and Bertelsmann.

Andrey Terebenin, Sistema Asia Fund Managing Partner, commented:

“We're thrilled to be able to again back LendingKart, a company that is transforming lending to MSMEs in the world's biggest MSME market, India. LendingKart possesses breakthrough proprietary technology, a sophisticated and driven senior management team and demonstrated solid growth. The strong team is supported by a complimentary pool of experience among its investors”.

Aligned with the Government of India’s agenda of building financial inclusion, LendingKart Finance works towards ensuring availability of credit for small and micro enterprises across the country that either do not have access to credit or are capital deficient currently. LendingKart leverages robust in-house technology tools based on big data analytics and machine learning algorithms to evaluate creditworthiness. By analysing thousands of data points to assess factors like financial health, comparative market performance, social reliability & compliance and a distinctive evaluation process, LendingKart aims to disburse loans with minimal paperwork within 72 hours. 

SAF believes LendingKart’s innovative business model, rapid growth rates and dominance over the competition put it on track to become a Unicorn. In fact, LendingKart Technologies has been identified as a “Soonicorn” by Inc42 in the digital lending space for possessing the potential to become a Unicorn company by 2020 and has also won the title of “Best Fintech Company” in the Lending category organized by KPMG in India along with Business Today. 

In November 2018 LendingKart was included in the Top 50 Leading Global Fintech Innovators list within the Fintech 100 report for the third consecutive year and was again the only Indian Fintech lender on the list. The report, compiled by H2 Ventures and KPMG, highlights companies that are taking advantage of technology and driving disruption within the financial services industry.

Sistema established venture capital fund Sistema Asia Fund in 2015 to support Indian startups operating in technology and niche consumer centric segments enabled by technology. Other investments include Seclore (security), Kissht (consumer lending), Licious (online meat retailer), Rebel Foods (Internet restaurants chain), Netmeds (a top-4 Indian e-pharmacy) and Uniphore (AI).