Lendingkart, a major player in the Indian fintech space, reported robust revenue growth in FY24 despite a slight decline in profitability. Following its acquisition by Temasek’s Fullerton in a distress sale, Lendingkart saw its valuation drop to approximately $100 million, a significant reduction from its peak of $690 million.
Revenue Breakdown
The firm’s revenue from operations surged 36% to Rs 1,090 crore in FY24, compared to Rs 798 crore in FY23, driven by growth in co-lending and commission income.
Key Revenue Streams:
- Co-lending Revenue:
- Contributed 54% of total operating revenue
- Grew by 88% to Rs 591 crore in FY24
- Interest on Term Loans:
- Declined by 2.86% to Rs 407.81 crore
- Commission Income:
- Skyrocketed 34X to Rs 22.58 crore
- Other Operating Activities:
- Contributed Rs 69.15 crore
Total Revenue:
Including non-operating income of Rs 127 crore (from interest and other sources), Lendingkart’s overall revenue stood at Rs 1,217 crore for FY24.
Expense Overview
Rising expenses, particularly in employee benefits and legal charges, led to an increase of 49.4% in total expenditures, which reached Rs 1,022.7 crore in FY24 compared to Rs 684.4 crore in FY23.
Major Expenses:
- Finance Costs: Rs 293.53 crore (+16.82%)
- Employee Benefits: Rs 199 crore (+75.7%)
- Legal Charges: Rs 125.62 crore (+58.25%)
Notably, impairment losses (Rs 171.67 crore in FY24) were excluded from expense or profit calculations.
Profitability
While Lendingkart’s revenue scaled up, rising costs impacted its profitability:
- Profit After Tax (PAT): Rs 174.92 crore, down 6% from Rs 185.93 crore in FY23.
- ROCE: 23.33%
- EBITDA Margin: 44.39%
On a unit level, the company spent Re 0.94 to earn a rupee, reflecting a slight decline in cost efficiency.
Financial Health
As of FY24, Lendingkart reported:
- Cash and Bank Balances: Rs 768.5 crore
- Current Assets: Rs 2,110 crore
Industry Position and Future
Lendingkart’s valuation drop aligns with growing concerns about the fintech sector’s sustainability amidst rising competition and compliance challenges. However, the firm’s diversified revenue streams and strong financial backing, including Rs 3,217 crore in funding from investors like Temasek, Bertelsmann, and Mayfield, provide a stable foundation for recovery.
With its focus on SME lending and a disbursement record of over Rs 18,700 crore to more than 300,000 businesses, Lendingkart remains a significant player in India’s SME financing space.
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