MSME-focused digital lending platform Lendingkart reports Rs 118Cr PAT in FY23; Know the revenue

Lendingkart, a digital lending platform focused on micro, small, and medium enterprises (MSMEs), has witnessed a significant financial turnaround in the fiscal year ending March 2023. 

For the first time, the company reported a profit of Rs 118 crore, a notable turnaround from a loss of Rs 203 crore in the previous fiscal year. The profit was generated on total revenues of Rs 850 crore, with a 29.5% increase in revenue from operations, reaching Rs 798 crore in FY23.

Expanding reach

The company's growth trajectory is notable, with a 44% increase in its loan book during 2022-23. Lendingkart earlier said that it had disbursed around Rs 4000 crores in the year, averaging about Rs 1,000 crore per quarter.

The company is now serving over 4000 cities and towns across 11,700 pin codes in India. The majority of these loans, over 80%, were disbursed through more than 20 co-lending partners, including major banks and NBFCs, using Lendingkart's tech platform "2gthr".

Strategic partnerships 

Lendingkart's success is partly due to its strategic partnerships with key financial institutions like Punjab National Bank, SDM Bank, Bank of Maharashtra, Canara Bank, and Amazon. 

The company's proprietary co-origination/co-lending platform, "2gthr", has been instrumental in providing MSMEs with improved access to financing. Lendingkart's approach to underwriting, which utilizes a machine-learning model analyzing over 5,000 variables per loan, has been a game changer in assessing customer creditworthiness.

What led to the profit?

A significant factor in Lendingkart's profitability is its financial prudence. The company managed to keep its finance costs or interest expenses, flat at Rs 250 crore, which is 33% of the total expenditure.

Additionally, Lendingkart reduced its impairment loss on financial asset loans and advances, which represents provisions and write-offs (NPAs). The overall expenditure for FY23 was Rs 751 crore, up from Rs 88 crore in FY22, due to increased legal costs, commissions, recruitment, advertising, and other overheads, Entrackr reported.

Join our new WhatsApp Channel for the latest startup news updates