Lendingkart Turns Profitable, Records INR 118.8 Cr PAT in FY23

In a financial tale worth noting, Lendingkart, the digital lending platform tailored for Micro, Small, and Medium Enterprises (MSMEs), has turned a significant corner. The fiscal year ending March 2023 witnessed the company’s balance sheet transform from losses to profits, a milestone etched in Rs 118 crore on a canvas of total revenues amounting to Rs 850 crore.

Credits: Startup Story

Lendingkart: A Beacon in Digital Lending

Lendingkart, founded by Harshvardhan Lunia and Mukul Sachan, stands as a digital platform with a laser focus on empowering MSMEs. Specializing in disbursing loans with an average ticket size of up to Rs 6 lakh, the platform has become a crucial financial partner for small business owners seeking accessible and timely financial support.

Financial Triumphs in FY23:

The consolidated financial statements that Lendingkart filed with the Registrar of Companies quietly but confidently told the narrative of its rise. Operational revenue increased significantly, rising from Rs 616 crore in FY22 to Rs 798 crore in FY23 (a 29.5% increase). When the red ink turned black, the company’s first profit of Rs 118 crore was recorded.

Revenue Composition and Operational Model:

In the rhythmic dance of numbers, Lendingkart’s revenue choreography is diverse. Beyond the interest symphony that constitutes 51% of operating revenue, the platform fees and gains on loan assignments add nuanced notes to the melody. The company’s operational melody resonates in disbursing loans, with an average ticket size of up to Rs 6 lakh, to the heartbeat of MSME business owners.

Cost Structure and Expenditure Management:

Behind the scenes, Lendingkart orchestrates a careful financial symphony. While interest expenses retained their rhythm, remaining at Rs 250 crore, other instruments in the expenditure orchestra underwent a harmonious shift. Deep cuts in legal costs, commission payments, training, recruitment, and advertising led to a noteworthy reduction in overall expenditure from Rs 88 crore in FY22 to Rs 751 crore in FY23.

Profitability and Efficiency Metrics:

The spotlight on efficiency reveals Lendingkart’s finesse in turning a rupee into Rs 1.06, with ROCE and EBITDA margins hitting 6% and 16%, respectively. The numbers tell a tale of a company not just regaining its financial footing but doing so with a newfound swagger.

The Role of Promoter Experience:

Lendingkart’s journey is a testament to the conductor’s skill—in this case, the founders, Harshvardhan Lunia and Mukul Sachan. Drawing from their experiences in loan syndication and advisory realms, they’ve orchestrated a harmony of deep financial understanding and strategic expansion. Their slow, steady tempo, marked by long-term relationships, speaks volumes in an industry often tempted by the allure of rapid growth.

Strategic Growth and Client Relationship:

In a world of rapid-fire decisions, Lendingkart’s measured steps speak volumes. While the specific composition of its loan portfolio remains veiled, the company’s past performance indicates a strategic positioning that allows it to navigate market ebbs and flows with grace. It’s a testament to the fact that sometimes, pacing matters more than sprinting.

Potential Impact and Future Prospects:

The echoes of Lendingkart’s FY23 triumph resonate beyond its financial statements. In the fintech industry, the company’s success signifies a note of credibility. Navigating through the competitive currents, Lendingkart emerges as a beacon, signaling the viability of digital lending platforms in addressing the nuanced needs of MSMEs. As it solidifies its position, one anticipates Lendingkart to carve a more pronounced melody in the ever-evolving symphony of digital lending.


In the financial overture that is Lendingkart’s FY23, the company has not merely balanced the books; it has composed a score of resilience and adaptability. Its journey, from losses to profits, is an engaging chapter in the evolving narrative of fintech. As Lendingkart continues to fine-tune its rhythm and amplify its impact in the MSME lending arena, its story serves as an inspiring prelude for others navigating the unpredictable tides of digital finance.