Fullerton Financial Holdings (FFH), owned by Temasek, has acquired a majority stake in Lendingkart, a digital lending platform focused on providing loans to micro, small, and medium enterprises (MSMEs). This investment, part of Lendingkart’s Series E funding round, includes a capital infusion of Rs 252 crore. The deal was finalized after receiving approval from the Reserve Bank of India (RBI).
The acquisition is expected to enhance Lendingkart’s ability to support small business borrowers. With Fullerton’s strategic backing, the platform aims to strengthen its technology-based credit underwriting, expand its lending capacity, and improve access to affordable funds for MSMEs.
Lendingkart, founded in 2014 by Harshvardhan Lunia and Mukul Sachan, provides digital working capital loans to small businesses that often face challenges in obtaining loans from traditional banks. This investment marks a major milestone for the fintech company, which has been working to simplify and expand credit access for MSMEs.
Fullerton and Lendingkart Deal
Harshvardhan Lunia, co-founder and managing director of Lendingkart, expressed optimism about the deal. He said, “The successful closure of our Series E round is a strong validation of Lendingkart’s vision to empower MSMEs with easier access to credit. With Fullerton’s strategic support, we will strengthen our underwriting capabilities, expand our lending capacity, and significantly increase loan disbursals to help small businesses thrive.”
Since its inception, Lendingkart has disbursed thousands of loans to small enterprises using advanced digital tools. The platform leverages AI, machine learning, and alternative credit scoring methods to assess borrowers and provide loans quickly and efficiently.
Notable Investors and Market Growth
Lendingkart has raised over Rs 1,050 crore in equity funding from investors, including Fullerton, Bertelsmann, Mayfield India, Saama Capital, Sistema Asia, and India Quotient. Although the company did not disclose its valuation in the latest funding round, recent reports indicated that Lendingkart had faced valuation challenges amid a tightening funding environment.
The deal reflects Fullerton’s growing focus on India’s MSME lending market, where digital lending has gained momentum due to increased demand from small businesses lacking traditional credit options.
The Indian fintech lending market is expanding rapidly, driven by innovative credit models and growing digital adoption. According to industry estimates, India’s MSME financing gap stands at $530 billion, presenting a significant growth opportunity for digital-first platforms like Lendingkart.
