New Delhi: Lendingkart, a digital lending platform catering to micro, small, and medium companies (MSMEs), has reported a net profit of Rs 120 crore for the fiscal year ending on March 31, 2023. This marks a significant turnaround from the previous fiscal year when the company had incurred a net loss of Rs 203 crore. The company’s overall revenue in FY23 reached Rs 828 crore, and total credit disbursements rose by 44 per cent to approximately Rs 3,960 crore, indicating a strong growth trajectory.
Lendingkart’s success can be attributed in large part to its co-lending and co-origination software platform called 2gthr, which accounted for nearly 80 per cent of the company’s loan book, amounting to Rs 3,169 crore in FY23. This platform allows Lendingkart to maintain control over various aspects of the lending process, including origination, underwriting, and collection. It also provides financial partners with a hurdle rate and risk insurance, ensuring a minimum rate of return on investments.
Harshvardhan Lunia, the Co-founder and CEO of Lendingkart, has expressed his plans to capitalize on the company’s regained momentum by launching an SME credit card and focusing on personal loan products. Additionally, Lendingkart intends to secure further equity funding in the fourth quarter of the year.
While 2gthr currently contributes nearly half of Lendingkart’s total revenue, amounting to Rs 400 crore, the company also offers other products, such as the xlr8 loan distribution platform and the Collec10 collection intelligence platform. These offerings supplement Lendingkart’s comprehensive suite of services and further contribute to its overall revenue stream.
Despite its recent success, Lendingkart has stated that it does not have immediate plans for an initial public offering (IPO), according to Lunia’s interview with a media publication. The company aims to maintain its focus on consolidating and expanding its position in the digital lending space, leveraging its technology-driven approach to support MSMEs in accessing the credit they need for growth.
With its impressive financial performance, bolstered by the prominence of 2gthr and a diverse range of lending products, Lendingkart is poised to continue its upward trajectory in the Indian digital lending market. The company’s commitment to innovation and its ability to meet the evolving needs of MSMEs position it as a significant player in driving financial inclusion and growth for the sector.