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Fullerton Financial Holdings (FFH), a wholly-owned subsidiary of Singapore’s Temasek, will acquire a controlling stake in Lendingkart, a fintech company focused on lending to small businesses.
This will entail an investment of up to ₹252 crore in the Ahmedabad-based fintech and will further solidify Lendingkart’s position as a leader in digital lending.
As a result of the investment, FFH will become a majority shareholder in Lendingkart.
The quantum of stakes that FFH will hold in Lendingkart post the regulatory approval for this investment transaction was, however, not disclosed.
FFH is already an investor in Lendingkart. As of end March 2024, FFH held 38.16 per cent stake in Lendingkart Technologies Private Ltd (LTPL), which owns 100 per cent of Lendingkart Finance Limited.
Commenting on the investment, Hong Ping Yeo, CEO of FFH, said, “FFH’s mission since inception is to be the catalyst in enriching lives and enabling success of customers and communities served by our portfolio companies across Asia. Our investments in Lendingkart are a testament to our continued belief in the MSME opportunity in India and that well-governed, scalable franchises can bring significant value to small businesses.”
Market expansion
The capital infusion from FFH will enable Lendingkart to deepen its reach in underserved markets and enhance its technology, taking a giant leap towards fulfilling its mission of fostering financial inclusion for small businesses in India.
Harshvardhan Lunia, Founder & Managing Director of Lendingkart, said “We are excited to further deepen our partnership with FFH in what will truly be a transformative phase of our journey.
This investment represents a vote of confidence in Lendingkart’s ability to transform the MSME lending landscape. Our goal is to replicate FFH’s past successes in the Indian financial markets”.
With FFH’s backing, Lendingkart aims to bring more small businesses into the formal lending ecosystem and stay true to its mission: Simplifying MSME Finance, he added.
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