Temasek's Fullerton has recently acquired the troubled fintech firm Lendingkart through a distressed sale. The company's valuation plunged to around $100 million in the deal, down from its peak of $690 million. Although the reasons behind this decline may become more apparent upon the release of the FY25 figures, it is noteworthy that the profit after tax (PAT) of the company experienced a decrease of 6% during the fiscal year ending March 2024.

Lendingkart is a non-banking finance company (NBFC) that offers working capital and business loans to small and medium-sized enterprises (SMEs) across India. It offers loans with an average ticket size of between 5 lakh and 6 lakhs to MSMEs and has disbursed over 18,700 crore to more than 300,000 businesses.

Revenue from co-lending was the primary contributor to operating revenue, accounting for 54% of the operating revenue, which surged by 88% to 591 crore in FY24. The revenue generated by interest on term loans declined by 2.86% to 407.81 crore in FY24, whereas commission income soared by 34X to 22.58 crore in FY24. It also generated a revenue of 69.15 crore from various operational activities.

The increasing expenses on employee benefits took a toll on Lendingkart's profit, which slipped by 6% to 174.92 crore in FY24 from 185.93 crore in FY23. It had a ROCE and EBITDA margin of 23.33% and 44.39%, respectively. The company spent 0.94 to earn a rupee on a unit basis in FY24.  As of FY24, the Ahmedabad-based company had cash and bank balances of 768.5 crore and a current asset of 2,110 crore.