Fintech firm Lendingkart clocks 6 pc profit drop at Rs 175 crore in FY24

Fintech company Lendingkart has reported almost 6 per cent drop in profit after tax (PAT) at Rs 174.92 crore in FY24 from Rs 185.93 crore in FY23.

As per its consolidated financials, employee benefit expenses surged 75.70 per cent to Rs 199 crore. The finance cost increased by 16.8 per cent to Rs 293.53 crore last fiscal.

Meanwhile, the fintech company’s revenue from operations increased 36 per cent to Rs 1,090 crore in FY24 from Rs 798 crore in FY23. On a unit basis, the company spent Re 0.94 to earn a rupee in FY24.

The Ahmedabad-based company’s total expenses increased 49.4 per cent to Rs 1,022.7 crore from Rs 684.4 crore in FY23.

Last month, Lendingkart announced that Fullerton Financial Holdings (FFH), an existing investor through its affiliate, is acquiring a controlling stake in the company. FFH, a wholly-owned independent portfolio company of Singapore-headquartered investment company, Temasek, committed up to a further Rs 252 crore.

As per its financials, revenue from co-lending surged by 88 per cent to Rs 591 crore last fiscal.

FFH owned about 38.16 per cent of Lendingkart Technologies Private Limited (LTPL) as of March 2024. Hong Ping Yeo, CEO of FFH, said the 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.”

Lendingkart said the capital infusion will enable 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.

The group is financed by reputed international investors like Fullerton Financial Holding (FFH), Bertelsmann, Mayfield India, Saama Capital, Sistema Asia, India Quotient, and others and has raised around Rs 1,050 Crores of equity till date. The group recently raised Rs 200 crore in debt funding from EvolutionX Debt Capital.

(With inputs from IANS)