NBFC startup LendingKart, which offers unsecured loans to MSME, has raised huge amount of debt funding from public banks as well as private lenders. This has been disclosed by the company’s regulatory filings, which was accessed by Techpluto.
The Ahmedabad headquartered company has been on a fundraising spree via debt route over the last few months to expand its loan portfolio and probably for meeting its capex and opex expenditures. It must be duly noted that NBFCs largely borrow from public as well as private banks for maintaining liquidity and loan provisioning.
It must be equally noted that LendingKart had raised INR 319 crore in a series D round barely two months back.
Now coming to the details of debt funding, LendingKart raised large amount of debt collectively from Bank of Maharashtra, State Bank of India, CBS Bank, Axis Trustee and also private investors.
AS per the regulatory filings, Bank of Maharashtra has lent 25 crore on the issuance of 250 NCDs or non-convertible debentures at nominal amount of Rs 10,00,000 per security.
State Bank of India lent 40 crore on the issuance of 400 NCD at nominal amount of RS 10, 00,000 per security. While CBS lent 10 Crore on the issuance of 100 NCD, Axis Trustees offered 20 crore on the issuance of 2000 NCDS.
Separately, LendingKart has raised nearly 24 crore from 16 individual investors, according to the regulatory filings.
As hinted above, LendingKart is likely to use large portion of debt funding for increasing its loan portfolio book. The company said while announcing its series D round that in coming months it will look to expand its lending base and further reach out to small and under-served small enterprises.
LendingKart’s debt funding spree has come at a critical time when a big part of India’s NBFC sector is reeling under liquidity crisis. While the liquidity crisis in the NBFC industry started last year itself, analysts claim that the Covid-19 outbreak has further exacerbated the crisis.