LendingKart declares acquisition of Upwards for Rs 100 crore
By Team Startupcity | Thursday, 09 February 2023, 09:05 IST
Lendingkart, a company that specializes in offering working capital loans announced on Wednesday the acquisition of digital lending platform 'Upwards' for Rs 100 crore. The company management said that they believe that acquiring Upwards will align with its mission of providing finance to the underserved with the help of robust technology.
“With this partnership, Upwards will be aptly positioned to execute its strategy of helping customers smoothly obtain personal loans," Harshvardhan Lunia, the chief executive and founder of Lendingkart stated.
Lunia has raised around Rs 1,050 crore from external investors since founding Lendingkart in 2014.
Upwards founded in 2017 is a central bank-registered Non-Banking Financial Company (NBFC) committed to offering personal loans to salaried professionals. The company claims to cater to the requirements of its customers by adding swift technology in the loan-buying process.
The credit underwriting engine of Upwards makes use of complex algorithms to analyze more than 500 data points and maintain superior quality of credit, the firm said in a statement.
“With Lendingkart's credit, capital, and distribution capability, we plan to deepen our presence across the country to bridge the massive credit gap in the personal loan market in India," Upwards' co-founder Abhishek Soni said.
The development came as the Ministry of Electronics and Information Technology blocked 94 betting and digital loan application like PayU’s LazyPay, Kissht, Faircent, and Kreditbee for having links with China.
On Wednesday, the representatives of 15 such firms met with the officials of the ministry in New Delhi. “Companies were given some 30-minute slots to make individual representations and there were some group representations too," two persons aware of the details told Mint on the condition of anonymity.
“Without any show-cause notice, suddenly things are happening. The whole digital lending industry has been battered to death. Why it has been happening, nobody understands. We thought that the RBI has come up with digital lending guidelines and now we can focus on building business, but now we know there is MeitY also," one fintech founder said commenting on the situation.
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