Fintechs hit green patch post a rough couple of years

economictimes.indiatimes.com:

lending sector. A few major venture-funded lending startups have swung into profits in fiscal year 2023 and some are also scouting for fresh equity rounds to shore up their capital reserves. Industry insiders told ET that after the two years of the pandemic, revival has been quick in the small and medium enterprise sector, which has helped some SME-focused lending platforms.

Also, in terms of the consumer lending business, things are looking better in the salaried segment, with many IT companies asking their employees to get back to office. Ahmedabad-based Lendingkart is looking for a fresh funding round, two sources in the know told ET. It has reached out to a clutch of strategic equity investors with plans to raise around $30 million to $50 million to shore up its equity base.

Singapore-based Fullerton Financial Holdings owns around 40% in Lendingkart. The company had last raised an equity round in 2020. “Fullerton might not lead the next round in Lendingkart; they are looking for strategic private equity players who will evaluate the company in terms of its core lending operations,” said one of the people cited above.

Emailed queries to Lendingkart went unanswered.Financial turnaround Lendingkart managed a turnaround in the last fiscal year. The company closed FY2023 with a profit of Rs 119 crore, against a loss of Rs 203 crore in FY2022. The fintech pushed up total assets under management to Rs 4,978 crore, a 51% jump from Rs 3,284 crore in FY2022.

Gurgaon-based Indifi Technologies reported a $35 million funding round in June. It has reported disbursals of Rs 1,500 crore as of March 2023 with 100% growth over last year. Overall, Indifi also swung into a profit in the last fiscal year.