The debt was secured by Lendingkart FinanceLtd, an NBFC subsidiary of the company. The debt investment will be used to expand the SME lending platform’s presence to more than 700 cities around the country.
This brings the company’s total debt funding raised till date to $40 million.
“We will continue to raise debt funding to build our book and lend to more businesses,“ CEO Harshvardhan Lunia said.
Lendingkart offers loans of an average ticket size of Rs 4-5 lakhs to small and medium businesses.
The company has been approaching banks to raise debt funding, considering they lend at a lower rate than NBFCs.
“We, at Kotak Mahindra believe that each startup business has its own unique set of requirements linked to their business model and hence, understanding the nature of business and structuring the solution around it is essential. We are excited to work with Lendingkart Finance since we believe they have a unique and efficient proposition to finance customers – largely in a space which is not as effectively addressed by most banks.” says Manish Kothari, Senior EVP & Business Head, Corporate Banking, Kotak Mahindra Bank.