India has about 4.8 crore MSMEs which consequently provides employment to over 10 crore people. However, they suffer from a lack of funding support despite the government’s various attempts at financial inclusion. In order to bridge this credit gap, Lendingkart offers quick, convenient financing options. Being one of the leading NBFC startups in India, they claim to have disbursed over 10,000 loans across the country with operations across 23 sectors.
Lendingkart Finance covers sectors like FMCG, apparels, computers, mobile and accessories, textile and industry supplies. These industries are said to have a frequent demand for working capital loan owing to large daily operational costs. Among the tier 1 and tier 2 cities, Gujarat has the highest demand and 22% of the overall demand comes from the apparel, clothing and accessories sector. This is followed by computers and mobile sector with 12% and 10% for FMCG sector. The health and pharma products, IT services and automobile accessories sectors are also gaining in capital loan requirement.
Offering their services to as many as 550+ cities in 28 states in the country, Lendigkart has disbursed loans in excess of Rs. 500 crore to more than 7,500 startups since its inception.
“We have been able to do this by building a robust low-cost technology platform that today evaluates a new application every 5 minutes and disburses a loan every 15 minutes. Our vision is to drive financial inclusion for the entire MSME sector, and we are happy to say that we are well on our path to achieve that,” says, Harshvardhan Lunia, Co-Founder and CEO, Lendingkart Technologies.
The Ahmedabad-based fintech company is aiming to service more than 30,000 SMEs by the end of this year, disbursing over Rs. 1,600 crore. Like Lendingkart, Finova Capital, IndiaLends and Faircent are some of the startups that are enabling financing options for small businesses and entrepreneurs. Finova Capital, which focuses on Rajasthan area aims to reach 1500 MSMEs by 2018 and have financed ventures in tier 2 and tier 3 cities of Rajasthan with a total of more than Rs. 20 crore since its founding in 2015.
NBFC startups are expected to be a huge boost for the SME segment, which has increased in sick MSMEs between 2012-13 to 2015-16. Providing the steady cash flow for working capital to meet daily operational expenses, these NBFCs are looking to revive the sector – and consequently the country’s GDP.