In a deal valued at between Rs 100 and Rs 120 crore, the SME-focused digital lending platform Lendingkart bought personal loans provider Upwards. This coincides with the Indian government's crackdown on credit applications, which has caused uncertainty in the industry.
Salary professionals can apply for personal loans from Upwards using its automated loan underwriting and disbursement process. Its offering focuses mostly on lower-income demographics that formal credit lenders have historically underserved. The start-up has received loans totaling more than Rs 500 crore and is supported by Shunwei Capital, India Quotient, and Mayfield Fund.
Lendingkart, on the other hand, has so far given loans of more than Rs 11,500 crore to more than 1.6 lakh MSMEs in more than 4,000 Indian cities.
Numerous investors have backed it, including Saama Capital, Mayfield India, Bertelsmann India Investments, Fullerton Financial Holdings, IndiaQuotient, and Sistema Asia Fund.
It is extending its reach into the retail lending market with the most recent acquisition. Before that, Lendingkart had also purchased KountMoney in 2018, a marketplace for loans that links creditworthy borrowers with institutional lenders.
One of the fintech industries' fastest-growing subsectors recently has been digital lending, which by 2030 is expected to make up about 60% of the industry. According to a PwC report from 2022, the internet lending market would expand by 48% in 2023.