Fintech start-up banks on TN’s SMEs to drive business

One such start-up in the fintech space, an Ahmedabad-Bengaluru based outfit called Lendingkart Finance Ltd, an, has disbursed loans to more than 500 SMEs in TN. 

The company, which received a fund infusion of $45 million through debt and equity, has doled out working capital loans to SMEs in more than 60 cities in the state and is keen on playing a major role in enabling true financial inclusion within the state. With a focus on empowering SMEs belonging to the unbanked population, the company has reached out to small towns such as Karur, Nagapattinam, and suburbs like Perungudi, Villivakkam, and Ambattur where there is minimal or no formalised financial institution to cater to the needs of small businesses. 

Harshvardhan Lunia, CEO and Co-founder, Lendingkart Technologies said, “SMEs form an integral part of Tamil Nadu’s economic development as is evident from the growth of the microfinance industry in the state. While the State’s banking infrastructure is growing at a rapid pace, there are still unmet needs of thousands of SMEs to consider, in terms of access to capital, especially in the Tier 2 and Tier 3 cities. We have reached out to some of these SMEs, empowering them to easy access of working capital for their business.” 

The State has identified access to finance for SMEs as one of the critical components of Tamil Nadu Vision 2023, apart from technology and infrastructure availability. 

Lunia adds, “We disburse loans to a deserving borrower within 72 hours from the time of application. Till now, more than two lakh SMEs across the country have reached out to us for their credit requirements. Loans worth Rs 600 crore have been disbursed pan India in total since the time of our founding and as many as 12,000 people have been served by our loans so far. Our aim is to disburse Rs 1,500-1,600 crore in 2017-18.”