Lendingkart Technologies, which provides working capital finance to SMEs, has registered a near seven-fold year-on-year rise in consolidated net losses, albeit on a small base, for the year ended March 2016.
Lendingkart Technologies, which provides working capital finance to small and medium enterprises (SMEs), has registered a near seven-fold year-on-year rise in consolidated net losses, albeit on a small base, for the year ended March 2016. The company reported a net loss of Rs 8.2 crore during 2015-16 compared to Rs 1.2 crore a year ago, according to documents filed with the registrar of companies (RoC).
The Ahmedabad-based fin-tech company, founded by Harshvardhan Lunia and Mukul Sachan, reported a consolidated revenue of Rs 4.7 crore compared to just Rs 34,718 a year ago, the company said in its filing. Lendingkart has a wholly-owned arm, Aadri Infin (AIL), which is a non-banking financial company and engaged in the business of providing working capital loan to the small- and medium-sized enterprises. Its expenses rose 10.7 times to Rs 12.9 crore against Rs 1.2 crore a year ago, of which employee expenses rose manifold.
Founded in December 2014, Lendingkart is engaged in the business of developing software and providing services in relation to implementation of computer software and hardware systems, management of data processing, financial data analysis, software useful for lending companies, banks and financial institutions, among others. The company has developed technology tools based on big data analysis which facilitates lenders to evaluate borrower’s creditworthiness and provides other related services.
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Unlike banks and other NBFCs, Lendingkart does not focus on vendor’s old records to evaluate the credit risk profile of a potential client. It focuses on the client’s current year’s cash flows and business growth. “The objective is to make capital funds available at finger tips so that entrepreneurs can focus on business instead of worrying about gaps in their cash flows,” the company said.
Lendingkart Technologies raised $32 million (Rs 205 crore) in a second round of funding led by Bertelsmann India Investment in June last year. Darrin Capital Management and existing investors Mayfield India, Saama Capitla and India Quotient also participated in the debt-cum-equity round of funding.
Over the past two years, Lendingkart has arranged loans to customers in 135 cities across 22 states, witnessing a 20% month-over-month growth in loan origination.