Fullerton-backed Lendingkart, which lends to micro, small and medium enterprises, on Thursday said that its profit almost doubled in the June quarter buoyed by increased disbursements and healthy growth in its fintech platforms business.
Net profit at the Ahmedabad-based company surged 99% to Rs 30 crore from nearly Rs 15 crore in the same quarter last fiscal.
“For Lendingkart, the first quarter of FY24 has been a resounding success, showcasing an unwavering commitment to growth and financial empowerment of small businesses across the country,” said Harshvardhan Lunia, founder and chief executive at Lendingkart.
“We will continue to focus on simplifying finance for small businesses and driving economic growth with our innovative solutions,” he added.
The strong quarterly performance comes on the heels of rising disbursals along with an impressive growth of its fintech arm, Lendingkart Technologies Pvt. Ltd., which operates platforms like 2gthr, Cred8, Xlr8 and Collec10. These platforms helped the company minimise lending-related risks.
“Balance sheet business is a risky business. So, we are diversifying ourselves to a risk-free platform business,” Lunia said in an interview previously.
Lendingkart’s overall revenue grew by 43% to around Rs 268 crore in the quarter ended June. Of this, the platform business brought in Rs 167 crore in revenue, almost doubling from a year earlier.
Founded in 2014 by Lunia, Lendingkart has offices in Ahmedabad, Bengaluru, Mumbai, and Gurugram. The group is backed by investors such as Fullerton Financial Holding, a wholly-owned unit of Singapore’s state investment firm Temasek Holdings, Bertelsmann, Mayfield India, Saama Capital, Sistema Asia, and India Quotient. It has raised about Rs 1,050 crore in equity till date.
Since its inception, Lendingkart claims to have evaluated more than 200,000 applications, disbursed more than 230,000 loans worth more than Rs 14,000 crore across more than 4000 cities and towns in India.
In the lendingtech space, Lendingkart pits against startups like Aye Finance, Clix Capital, NeoGrowth, and FlexiLoans.
