MSME-lender Lendingkart plans to raise up to USD 100 million (~INR 850 crore) in a Series F round through a preferential issue led by majority shareholder Fullerton Financial, citing regulatory filings. Lendingkart Series F funding will shore up growth capital as the unlisted NBFC looks to step up lending to small businesses.
The proceeds are slated to fund expansion across the group, including its wholly owned NBFC arm Lendingkart Finance, and for general corporate purposes. The company has also moved to increase its authorised share capital to INR 16.9 crore from INR 4.9 crore to accommodate the issue.
As per the documents, Fullerton Financial is expected to infuse about INR 511 crore, while existing backers Bertelsmann, Mayfield and Saama Capital plan to contribute roughly INR 71 crore, INR 60 crore and INR 47 crore, respectively. Co-founders Harshvardhan Lunia and Mukul Sachan are also participating, with proposed subscriptions of about INR 31.5 crore and INR 12.9 crore. Additional participation from investors such as Sistema Asia Fund, Grand Anicut, India Quotient and Darrin Capital is envisaged, media reports said.
Post-allotment, Fullerton’s stake could rise to about 58.35%, up from around 56% when it acquired a majority holding on 27 March 2025. Other large shareholders include Bertelsmann, Mayfield and Saama, with single-digit stakes after the round, as per the shareholding table in the filings.
The capital push follows a challenging year. Lendingkart Finance reported a pre-tax loss in FY25 and triggered a covenant breach on bonds raised in January 2024, according to reports. The reports also noted FY25 operating income of about INR 862 crore and a net loss of roughly INR 288 crore, with an AUM around INR 5,000 crore as of March 2025, down 35% year-on-year. The company underwent a leadership change earlier this year, with Prashant Joshi taking over as CEO after Fullerton’s majority acquisition.
Fullerton has separately outlined plans to step up its India play, with an investment outlay of up to INR 2,000 crore and a focus on scaling secured lending at Lendingkart Finance, according to people aware of the matter. Any further capital deployment would be subject to internal approvals and market conditions.
Lendingkart Series F Funding: Snapshot
- Lendingkart Series F round will be around INR 850 crore (~USD 100 million) via a preferential issue.
- Lead investor: Fullerton Financial; co-investors include Bertelsmann, Mayfield, Saama; founders to participate.
- Post-issue holding: Fullerton seen at about 58.35%.
- Use of proceeds: Expansion across group entities and general corporate purposes.
- Corporate action: Authorised share capital to rise to INR 16.9 crore from INR 4.9 crore.
- Recent performance: FY25 loss; AUM at INR 1,355 crore, down 35% YoY.
Conclusion
Lendingkart Series F round aims to stabilise its balance sheet and restart growth after a tough FY25. With Fullerton driving the round and signalling deeper engagement, the MSME-focused lender is set to prioritise scale and tighter risk controls as disbursements pick up. Execution on asset quality and funding costs will remain key watchpoints over the coming quarters. This report is for information only and is not investment advice.
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