CosmicTaco

Lendingkart Seeks Funding Amid Cash Crunch, Valuation Drop

CosmicTaco · 2024-10-17T12:42:31.113016+05:30

- Fintech startup **Lendingkart** is reportedly seeking fresh capital at a lower valuation from existing investor **Fullerton Financial Holdings (FFH)**. - The company's valuation is expected to drop to **$100 Mn** from **$350 Mn** in 2020 due to challenges in the unsecured loan market. - **FFH** plans to increase its stake to **60%** from **38%** as part of the capital infusion. - **Lendingkart** is facing asset quality problems with rising non-performing assets (NPAs) and increased credit costs. - The startup, which disburses loans to MSMEs, has disbursed 2.8 Lakh loans worth over **$1.8 Bn** across India since its inception. Source: [Inc42](https://inc42.com/buzz/lendingkart-seeks-down-round-amid-cash-crunch/)

Fintech startup Lendingkart is reportedly seeking fresh capital at a lower valuation from existing investor Fullerton Financial Holdings (FFH).
The company's valuation is expected to drop to $100 Mn from $350 Mn in 2020 due to challenges in the unsecured loan market.
FFH plans to increase its stake to 60% from 38% as part of the capital infusion.
Lendingkart is facing asset quality problems with rising non-performing assets (NPAs) and increased credit costs.
The startup, which disburses loans to MSMEs, has disbursed 2.8 Lakh loans worth over $1.8 Bn across India since its inception.