HARSHVARDHAN LUNIA, 42, has seen small businesses and their struggles from early in his life. A chartered accountant by training who comes from a business family, he saw the dearth of institutional financial support for such enterprises early in his career. This led to him founding fintech start-up Lendingkart along with his schoolmate Mukul Sachan, in 2014. Their aim: to revolutionise access to finance for micro, small and medium enterprises (MSMEs) through innovative tech solutions and cash flow-based lending.
Business has been good over the past decade and while Sachan left the Ahmedabad-based firm in 2019, Lendingkart has grown from strength to strength. Under Lunia’s watch, it posted its highest ever profit after tax (PAT) and total income in FY23. No wonder that it has emerged as the Best Fintech in Lending in the BT-KPMG Best Banks and NBFCs Survey 2022-23.
Lunia recalls that initially, it focussed on direct lending. But, over time, it recognised the limitation of this approach in addressing the vast credit gap for MSMEs. “This realisation led to a strategic shift towards co-lending partnerships with banks and NBFCs to leverage their resources and expertise. Today, more than 80% of our business is through co-lending,” says the Cofounder and CEO of Lendingkart, which operates as a Reserve Bank of India-registered NBFC. The fintech has names such as Punjab National Bank, Canara Bank, Bank of Maharashtra, IDFC First Bank, Aditya Birla Capital, and U Gro Capital among its co-lending partners. Incidentally, in its latest report, RBI’s expert committee on MSMEs said the sector has an estimated credit gap of ₹20-25 lakh crore.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Pension Scheme - Safety Net
The move to introduce the UPS has evoked mixed reactions. Analysts believe its funding will have limited impact on the fiscal math
The Reit Choice?
Real Estate Investment Trusts (Reits) Are Gaining Traction As Interest Rates Stabilise. But Returns Could Be Affected By Adverse Economic Conditions And Market Volatility
CORPORATE - Calling to Account
The sudden exit of Byju's auditor BDO marks the latest in a long series of setbacks for the edtech firm
EMPLOYMENT: Skills Push
The skill development ministry plans to partner with the UGC to improve the employability of undergraduates
Building on a Vision
L&T'S CHAIRMAN EMERITUS A. M. NAIK HAS BUILT A MAMMOTH ENTERPRISE THAT IS BUILDING A NEW INDIA, FROM ITS METRO RAIL SYSTEMS TO THE RAM TEMPLE
"KYS more important than KYC"
Vijay Kedia is a renowned equity investor; the value of his listed portfolio stands at around ₹1,750 crore
ROXX STAR
THE THAR ROXX COMBINES LUXURY WITH PERFORMANCE TO MAKE A STRONG STATEMENT IN THE MID-SIZE SUV SEGMENT
HIT THE GROUND RUNNING
Smartwatches have become indispensable tools for runners, offering real-time insights into pace, distance, heart rate, and more. Here are a few you can consider
TURNING THE TABLES
INDIA'S FURNITURE MARKET IS POISED FOR A GLOBAL TAKE-OFF. ALREADY, A HOST OF GLOBAL BRANDS HAVE MADE THE COUNTRY THEIR HOME, BUT INDIAN COMPANIES ARE NOT TOO FAR BEHIND
THE EVOLUTION OF ATHERA
IDENTIFYING OPPORTUNITIES IN ADVANCE HAS STOOD THIS BENGALURU-BASED VC FUND IN GOOD STEAD. NOW, WITH A HEIGHTENED FOCUS ON TECHNOLOGY, IT WANTS TO SUSTAIN THE SUCCESS