Temasek's Fullerton picks up controlling stake in Lendingkart for Rs 252 cr

Fullerton Financial Holdings (FFH), a wholly owned subsidiary of Singapore’s Temasek, has acquired a controlling stake in Lendingkart, a fintech firm in the micro, small, and medium enterprises (MSME) lending space.

FFH will infuse Rs 252 crore into the company, following which it will become a majority controlling shareholder in the Ahmedabad-based company.

The capital infusion is subject to regulatory approval.

“Our investments in Lendingkart are a testament to our continued belief in the MSME opportunity in India and that well-governed, scalable franchises can bring significant value to small businesses,” said Hong Ping Yeo, CEO, FFH.

The fintech company plans to deepen its reach in underserved markets and improve its technology with the latest capital infusion.

“This investment represents a vote of confidence in Lendingkart's ability to transform the MSME lending landscape. Our goal is to replicate FFH’s past successes in the Indian financial market. With FFH’s backing, we aim to bring more small businesses into the formal lending ecosystem,” said Harshvardhan Lunia, founder and managing director, Lendingkart.

Founded in 2014 by Lunia, Lendingkart offers loans through its in-house non-banking financial company (NBFC) and co-lending partnerships with other banks and NBFCs.

The company has raised around Rs 1,050 crore from investors, including Bertelsmann, Mayfield India, Saama Capital, Sistema Asia, and India Quotient.

It claims to have disbursed over 3,00,000 loans amounting to Rs 20,000 crore, with a presence in more than 4,100 pincodes.