Faced with losses and defaults, the fintech lender is switching to a co-lending and SaaS strategy.
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 …
Advait is a financial journalist and a former writer at The Morning Context. Here, he wrote on India’s banks, the wider financial services industry and the fintech ecosystem. He has previously worked with the Economic and Political Weekly, Business Standard, BloombergQuint and MediaNama, where he covered everything from the Reserve Bank of India to fintech policy.
Writer
advait@mailtmc.com
Mumbai