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Temasek owned Fullerton buys majority stake in MSME focussed lending tech platform Lendingkart
Category: Business News, Posted on: 30/03/2025 , Posted By: Ishika Agarwal
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Lendingkart has been founded in 2014 by Harshvardhan Lunia and Mukul Sachan. Lendingkart provides digital working capital loans to micro, small, and medium enterprises (MSMEs) that often struggle with traditional banking credit access. Fullerton Financial Holdings (FFH), a Temasek-owned financial services firm, has acquired a majority stake in fintech lender Lendingkart, following regulatory approval from the Reserve Bank of India (RBI). The deal, part of Lendingkart's Series E fundraise, sees Fullerton inject Rs 252 crore into the MSME-focused lending platform.

The stake acquisition is expected to strengthen Lendingkart's financial position, enhance its technology-driven credit underwriting, and improve access to lower-cost funds for small business borrowers. "The successful closure of our Series E round is a strong validation of Lendingkart's vision to empower MSMEs with easier access to credit," said Lunia, founder and Managing Director of Lendingkart.

Since its inception, Lendingkart has secured Rs 1,050 crore in equity funding from investors including Fullerton, Bertelsmann, Mayfield India, Saama Capital, Sistema Asia, and India Quotient. The fintech firm did not disclose the valuation at which the latest funds were raised. However, reports from October 2023 suggested Lendingkart was in talks with Fullerton for an internal funding round at a major valuation cut, after struggling to secure new equity financing over the past year. The deal reflects Fullerton's broader push into India's MSME lending sector, where digital lending has seen rapid adoption, driven by demand from small businesses lacking access to formal credit channels. The Indian fintech lending market has witnessed exponential growth, with digital lenders increasingly leveraging AI, machine learning, and alternative credit scoring models to serve underbanked entrepreneurs. According to industry estimates, India's MSME financing gap stands at nearly $530 billion, creating a vast opportunity for digital-first lending platforms to expand credit access. "The acquisition will strengthen Lendingkart’s long-term growth prospects and provide deeper financial flexibility to support sustainable expansion," the company said in a statement.

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