Oct 18: Fullerton Financial Holdings is set to acquire a controlling stake in Lendingkart, a digital lending platform catering to small and medium enterprises (SMEs). 

The deal - which includes an investment of up to Rs 252 crore ($30 million), is awaiting regulatory approval.

Lendingkart, a digital lending platform focused on small and medium enterprises (SMEs), announced that Fullerton Financial Holdings (FFH), a wholly owned subsidiary of Singapore’s Temasek, will acquire a controlling stake in the company.

The deal -- which includes an investment of up to Rs 252 crore ($30 million) -- is awaiting regulatory approval.

The investment amount will help Lendingkart enhance its technology and expand into underserved markets.

Founded in 2014 by Harshvardhan Lunia, Lendingkart has till date secured a total of Rs 1,050 crore ($126 million) in equity from investors, including Fullerton, Bertelsmann, and others. This acquisition marks a significant drop in valuation for Lendingkart, which was valued at approximately $690 million after a recent equity round.

Post-acquisition, Lendingkart’s valuation is expected to be around $100 million. Temasek already holds about 38% of the company before this transaction. 

Lendingkart provides loans averaging Rs 5 lakh to Rs 6 lakh; and has disbursed over Rs 18,700 crore to more than 300,000 businesses across 4,100 cities. 

In FY23, the company reported a revenue increase of 33.4% to Rs 858 crore, with a profit of Rs 119 crore. It has not yet released its financial results for FY24.

Furthermore, Lendingkart is reportedly planning an initial public offering (IPO) by next year.