LENDINGKART FINANCE LIMITED
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Lendingkart Finance Limited (“Lendingkart”) is a fast-evolving fintech Financial Institution that provides unsecured loans to micro and small and medium enterprises (MSMEs), using a digital lending platform coupled with data analytics models and machine learning technological capabilities – instead of traditional credit assessment methodologies – to evaluate creditworthiness of these borrowers. The company finances small (family) businesses largely with turnover up to USD 250K and employing up to 10 employees across various industries and geographies. Lendingkart has become a leader in the fintech space in India, with over 1 mln loans disbursed, catering to ca. 90,000 clients and operating in 29 states throughout India. Lendingkart is an existing client of FMO since 2017.
What is our funding objective?
In this transaction FMO invests the local currency equivalent of USD 15 mln in Non-Convertible Debentures issued by Lendingkart. The proceeds will enable Lendingkart to continue supporting its end-clients during these challenging Covid-19 times, as long-term local currency funding is still relatively scarce in India.
Why do we fund this investment?
The transaction fits with FMO's ambition to empower financial inclusion through a/o innovative fintech solutions/companies. With the proposed transaction FMO supports an existing client during a period of increased uncertainty by providing liquidity needed by Lendingkart to continue its operations and lending to clients when the economic conditions improve further. The funding will be used for on-lending by Lendingkart to MSMEs, with a focus towards women-run MSMEs and micro enterprises (with loan tickets < USD 10,000), and therefore contributes to FMO’s Reducing Inequalities target.
What is the Environmental and Social categorization rationale?
E&S category C. Lendingkart does not lend to sectors on the exclusion list.
More investments
| Date | Total FMO financing |
|---|---|
| 1/10/2022 | INR 300.00 MLN |
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Effective date
- 3/17/2021
- Total FMO financing
- INR 1080.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C