 "Lendingkart")
LendingKart Group, which gives loans to small businesses, said on Thursday its profit almost doubled to Rs 30 crore in the first quarter of Financial Year 2023-24 (Q1 FY24) compared to the same period last year as credit demand grows.
The Ahmedabad-based digital lender, which is backed by Fullerton, said revenue increased 43 per cent to Rs 269 crore in Q1 FY24. It recorded a 49 per cent year-on-year increase in the value of loans, which amount to Rs 1,213 crore. Out of the total disbursal in Q1 FY24, Rs 963 crore was made through the company’s co-lending partnerships with some 20 firms and the rest via its in-house non-banking financial corporation (NBFC).
“We are also proud of playing a role that helps our partner banks and NBFCs expand their footprint across India. This shared growth drives our outstanding numbers that continue to prove Lendingkart’s position in the financial industry. We will continue to focus on simplifying finance for small businesses and driving economic growth with our innovative solutions,” said Harshvardhan Lunia, founder and chief executive officer (CEO) of the company.
Total assets under management (AUM) of the lender, which focuses on lending to micro, small and medium enterprises (MSME), grew 52 per cent to Rs 5,515 crore from Rs 3,621 crore a year ago.
The company said till date it has disbursed more than 250,000 loans amounting to Rs 15,000 crore and believes demand will continue rising.
“The MSME segment itself is flourishing and the demand for business expansion is going to grow. (Additionally), fintechs bring together the distribution strength and the speed of credit access,” said Abhishek Singh, chief operating officer at LendingKart, told 'Business Standard' in an interaction.
