Funding · Financial Services

Lendingkart in talks with Fullerton for funding at lower valuation

By Startup Enthusiast · 16 September 2026

What they do

Lendingkart is an Ahmedabad-based digital lender for micro, small and medium enterprises

It is in talks with largest shareholder Fullerton Financial Holdings for an internal round at a valuation cut to $100 million

The company turned profitable after the pandemic but slipped into stress due to rising defaults on unsecured SME loans

Lendingkart is in talks with Fullerton Financial Holdings (FFH) for an internal funding round.
The round would value Lendingkart at about $100 million, down from ~$350 million in 2020.
FFH, the largest shareholder with a 38% stake, is looking to acquire a controlling stake.
Lendingkart had been trying to raise equity funding for a year but could not close a deal.
The company turned profitable in FY23 after the pandemic but then slipped into stress.
Stress was caused by rising default rates on unsecured SME loans.
Lendingkart Finance, the NBFC arm, reported a Q1 FY27 loss of ₹32.4 crore, down 62% from a year ago.

The valuation cut reflects the stress in Lendingkart's loan book and difficulty raising external capital.
FFH's move to take control suggests it wants to protect its investment and turn the company around.
Lendingkart Finance's revenue fell 55% in Q1 FY27, while expenses also dropped sharply.
The NBFC arm transferred stressed loans worth ₹94.7 crore to an ARC for just ₹2 crore.

Lendingkart is an Ahmedabad-based digital lending startup focused on MSMEs.
It operates through Lendingkart Finance, a wholly owned NBFC subsidiary.
Lendingkart Finance provides unsecured loans to small businesses via a digital platform.
Its main income sources are interest income and fees and commissions.
In Q1 FY27, interest income was ₹38.9 crore and fees income was ₹15.3 crore.
The company has been shrinking operations to cut losses, with total expenses down 58% YoY.

Fullerton Financial Holdings (lead) — FFH is the **largest shareholder** in Lendingkart, owning **38%** of the company.