ICRA

Mahindra & Mahindra Financial Services Limited, (MMFSL), .a Non Banking Financial Corporation (NBFC), announced collaboration with Lendingkart,a fintech company enhancing financial inclusion .Collaboration under 80:20 structure leverages Lendingkart's tech platform for end-to-end customer journey

Mahindra Finance forays into MSME focused co-lending partnership with Lendingkart

The Temasek-owned Fullerton Financial Holdings (FFH), which is an existing investor in the lending platform, will infuse Rs 252 crore in Lendingkart as part of the stake acquisition. However, the company didn’t disclose how much stake Fullerton will hold post this capital infusion. Reportedly, FFH held around 38.16 per cent of Lendingkart Technologies Private Limited (LTPL), that owns 100 per cent of Lendingkart Finance Limited (LFL).The Ahmedabad-based Lendingkart said the capital infusion from FFH will enable it to deepen its reach in underserved markets and enhance its technology to cater to the financial needs of small businesses.

Fullerton Financial Holdings infuse Rs 252 cr in Lendingkart; to take controlling stake

Lendingkart Finance, the NBFC arm of Lendingkart Technologies, posted a net loss of ₹84.8 crore in Q1 FY26, up 240.6% YoY from ₹24.9 crore loss in Q1 FY25, but down 30% sequentially from ₹120.5 crore in Q4 FY25. Operating revenue fell 60% YoY to ₹116.9 crore and 24% QoQ from ₹154.1 crore. Total income, including ₹2.9 crore other income, was ₹119.8 crore. The company’s losses worsened in FY25, with a ₹288.3 crore net loss versus ₹60.1 crore profit in FY24, and revenue declined 25% to ₹862.2 crore. Gross NPA rose to 4.3% in Q1 FY26 from 3.7% a year ago, while net NPA remained stable at 2.5%. CRAR improved to 39.83% from 21.64% in Q1 FY25, indicating strong capital adequacy. Founded in 2014 by Harshvardhan Lunia and Mukul Sachan, Lendingkart offers unsecured loans via its app Upwards. FFH acquired a majority stake for ₹252 crore in October 2024. The company faces financial struggles and leadership exits, including founder Lunia stepping down as MD in June 2025 and eight senior departures in the last fiscal year.

Lendingkart Finance Q1: Net Loss Swells 3.4X To INR 85 Cr, Revenue Falls 60% YoY

LFL's asset quality is under pressure, with adjusted gross stage 3 assets at 15.6% in H1 FY2026. This led to a ₹162 crore net loss for the period, following a ₹288 crore loss in FY2025. To recover, LFL is shifting toward higher-ticket and secured loans while tightening underwriting and collections. Despite these reforms, losses are expected through H1 FY2027 due to high legacy credit costs.




LFL’s asset quality is under severe pressure, with adjusted gross stage 3 assets at 15.6% in H1 FY2026. This led to a ₹162 crore net loss, following a ₹288 crore loss in FY2025. To recover, LFL is pivoting toward higher-ticket and secured loans with tighter underwriting, but legacy credit costs are expected to extend losses through H1 FY2027.


The issuer has made timely interest payments.

Prashant Joshi, MD & CEO 

Lendingkart Finance Limited (LFL), established in 2014, is an NBFC providing unsecured SME loans. It is a 100% subsidiary of Lendingkart Technologies (LTPL), which is majority-owned by Fullerton Financial Holdings (~77% as of November 2025). The group is supported by key investors including Saama Capital, Mayfield India, and Bertelsmann India.




Security Name: 11.25% Lendingkart Finance Limited 30 Jan 2026

ISIN: INE090W07667

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