Lendingkart witnesses Rs. 118 crore PAT in FY23


Lendingkart is a digital lending platform. It focuses on micro, small, and medium enterprises or MSMEs. The platform has been able to witness a great financial turnaround in FY23.

For the initial time, it has experienced a profit of around Rs. 118 crore. It is a great runaround after a loss of around Rs. 203 crore in the last fiscal year. The profit generated on the revenues of Rs. 850 crore, along with 29.5% growth in the revenue from various operations, reached Rs. 798 crore in FY23.

Lendingarts expanding reach

Lendingkarts growth trajectory is very visible. There is an increase of 44% in its loan book in 2022–23. As per the company, it has disbursed around Rs. 4000 crore in one year, which is an average of around Rs. 1000 crore per quarter.

The company serves more than 4000 cities and towns with around 11,700 pin codes across the country. The majority of these loans, more than 80%, were disbursed to more than 20 co-lending partners, such as major banks and NBFCs that are using Lendingkarts tech platform named 2gthr.

Lendingkarts strategic partnerships

The success of Lendingkart is also due to its strategic partnerships. It involves major financial institutions such as Punjab National Bank, Canara Bank, Amazon, SDM Bank, and many others.

The proprietary co-origination or co-lending platform of the company, 2gthr, has been playing an important role in offering MSMEs better access to financing. The companys approach to underwriting involves a machine-learning model that analyzes more than 5,000 variables for each loan. This can be a completely different aspect of assessing the creditworthiness of a customer.

What led Lendingkart to the profit?

The major factor that resulted in Lendingkarts profitability was its financial prudence. The company has been able to manage and keep its financial costs, or the overall interest expenditure, at Rs. 250 crore. This makes up around 33% of the entire expenditure.

Along with this, the company has been able to minimize its impairment loss on financial asset loans and advances. This represents the companys provisions as well as write-offs, or NPAs.

The complete expenditure of the company for FY23 was around Rs. 751 crore as compared to FY22, which was Rs. 88 crore.

Breaking down Lendingkarts expenses

The reason behind it is increased legal costs, recruitment, advertising, commissions, and various other overheads, as per Entrackr.

  • Cost of impairment: There has been impairment loss on its financial assets, etc., which has decreased to Rs. 112.1 crore in FY23.
  • Financial costs: There has been an increase in these costs by 4.5%.
  • Employee costs increased by around 54%, which is Rs. 113.3 crore.

Advertising or promotional costs: The company invested in them around Rs. 27.6 crore.

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