Lendingkart’s revenues grow to Rs. 10. 95 crore, losses grow in 65 pc in FY20; losses grew 20 pc

Small business lender Lendingkart, that provides working capital loans and business loans, has reported a 20.2 per cent increase in standalone revenue and a 65 per cent fall in the standalone losses for the financial year 2019-20.

While revenues had increased from Rs 9.1 crore in FY19 to Rs 10.95 crore in FY20, the losses grew from Rs 31 crore to Rs 51.2 crore during the said period, according to the regulatory filings.

Expenses too increased 55 per cent from Rs 40.1 crore in FY19 to Rs 62.1 crore in FY20. However, its consolidated revenues increased from Rs 222 crore to Rs 470 crore while losses jumped from Rs 3.9 crore to Rs 21.6 crore between FY19 and FY20.

The major expenses for Lendingkart in FY20 were Rs 15.21 crore towards advertising and promotion, Rs 14.76 crore for depreciation, depletion, and amortisation, Rs 19.82 crore towards employee benefits, etc. “Lendingkart Group remains focused on profitable operations, seeking to conserve cash, borrowing long-term, strengthening collections, rationalizing expenditure, and preserving capital,” the filing read.

Lendingkart Technologies, had in November 2020, launched its co-lending SaaS service Lendingkart together to enable its financial institution partners including banks and NBCFs get on-board its platform within two weeks and disburse unsecured loans to MSMEs. It had partnered with banks and NBFCs in a risk-sharing partnership to help them reach out and lend to MSMEs located remotely.

The company had increased its disbursement in FY20 by around 85 per cent to around 53,000 loans involving Rs 2,500 crore from FY19. Its Assets Under Management (AUM) for the year were around Rs 2,400 crores up 80 per cent from the preceding financial year.

Backed by Fullerton Financial Holding, Bertelsmann, Mayfield India, Saama Capital, Sistema Asia, India Quotient, and others, Lendingkart enables lending between Rs 50,000 and Rs 1 crore for a period of one to 36 months.

The company’s subsidiaries include Lendingkart Finance and Lendingkart Account Aggregator.