In a press release, Lendingkart said that the funding is in the form of cash credit facility which will allow the company to draw the amount over separate tranches as and when required.
This investment also marks the entry of public sector banks in a rush to reach out to more borrowers by backing up startups in the field. Earlier, Lendingkart got backed up by private banks- Yes Bank and Kotak Mahindra.
“We feel extremely privileged to have partnered with India’s largest bank which also shares the same vision of supporting the unbanked SME (small and medium enterprise) sector,” said Harshvardhan Lunia, co-founder and chief executive officer at Lendingkart.
“SBI, being one of the oldest and largest banks, has played a critical role in shaping India’s financial landscape for the last century. With the funds raised, we will further grow our loan books, expanding our reach to many more under-served SMEs (small and medium enterprises,” he added.
Lendingkart has Capital Float, Neogrowth and IndiaLends under it that offer small-sized loans to SMEs and small businesses, catering their working capital and business needs. Lendingkart secures funding from banks and lends it to borrowers.
The startup has also secured around Rs 200 crore in equity funding from investors that include Bertelsmann India Investment, Saama Capital, Mayfield India, India Quotient and Darrin Capital Management.
(With inputs from LiveMint)