New Delhi, May 7 (IANS): Fintech company Lendingkart, on Tuesday, said that it raised $10 million by way of external commercial borrowing from a fund managed by a leading global impact investment manager and member of the Schroders Group 'BlueOrchard'.

The company said that this funding will be used for onward lending activities for MSMEs.

"We see this investment as a testament to our unwavering dedication to supporting Indian MSMEs. It is a validation of our mission to democratise access to finance and champion entrepreneurship," Harshvardhan Lunia, Founder and CEO of Lendingkart Group, said in a statement.

"As an MSME finance specialist, Lendingkart will continue to support small and micro businesses to flourish, create jobs, drive economic development, and foster entrepreneurship, thereby contributing to overall socio-economic progress," he added.

Lendingkart clocked a net profit of Rs 116 crore at a group level for FY23 and had raised Rs 200 crore in long-term debt funding from growth-stage debt financing platform EvolutionX Debt Capital in June 2023.

Founded in 2014 by Lunia, Lendingkart has offices in Ahmedabad, Bengaluru, Mumbai, and Gurugram, and has service reach across the country.

The fintech company has developed technology tools based on big data analysis and machine learning algorithms which facilitate lenders to evaluate borrowers' creditworthiness and provide finance-related services.