Fintech startup Lendingkart Group expects an exponential rise in working capital loan demand from small businesses and estimates to disburse Rs 1,600 crore by 2017-end through its NBFC arm Lendingkart Finance, a company official said. The company, which caters to small businesses generating revenues of Rs 1-15 lakh per month, disburses loan through digital channel, Lendingkart Group Co-Founder and CEO Harshvardhan Lunia said.
“As a platform that leverages the power of mobile and web technologies, we have no geographical constraints. We have disbursed loans of Rs 400 crore since inception in 2014. In next one year, we are looking at a growth of four times at Rs 1,600 crore,” Lunia said. Simple processes and flexible offerings make it a lender of choice, hence a multi-fold growth over the years is an achievable target, he said.
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So far, the company has expanded its services to 462 locations across the country, disbursed 6,500 loans and expects to almost double both categories in next six months, he added. “With over 100 channel partners supporting Lendingkart Finance (the NBFC) effort, the endeavour is to reach out to 10,000 businesses in the SME space in next 6 months as well as to double the number of locations to about 800-900 cities,” Lunia said.
As the company is data analytics-based, it has no branches and operates from three locations — Ahmedabad, Mumbai and Bangalore.
Offering customers lending rates of 16-24 per cent, the company is of the view that post demonetisation, micro, small and medium enterprises (MSMEs) will move towards formal channels of lending as so far they were heavily dependent on financing from trade credit lines and friends and family.
“Post demonetisation, these alternate sources of finance have also dried up owing to lack of liquidity in the system,” Lunia said.
He said the MSME financing segment is largely a supply constrained market and its unaddressed credit demand is estimated to be at USD 150 billion.