Lendingkart hits the reset button to survive

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Editor's note: Lending to small and medium-sized enterprises in India has seen many cycles of ups and downs over the past couple of decades. Ten years ago, banks had more than 90% of the market share for SME loans, but eventually ceded space to non-banking financial companies, or NBFCs. A few years ago, fintech startups entered the space with technology and data analytics at the forefront of their lending operations.  Lendingkart Finance, a fintech NBFC, was one of these firms, and quickly became the biggest name among the SME-centric fintech lenders. Compared to the rigid processes of banks and conventional NBFCs, which took weeks to underwrite a loan, Lendingkart had a simple proposition: upload your documents and with the help of data analytics you could get a business or working capital loan within 72 hours.  This model was highly successful, particularly in the wake of the NBFC crisis of 2018, as Lendingkart ramped up its presence among SMEs that otherwise could not get a bank or NBFC loan.  But now, with the COVID-19 pandemic having wrecked the credit business, Lendingkart finds itself …