Lendingkart Acquires Private Loans App Upwards

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Lendingkart Acquires Private Loans App Upwards

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February 20, 2023

Lendingkart Acquires Private Loans App Upwards

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Lendingkart’s acquisition of Upwards is a strategic move aimed at strengthening the company’s position in the lending industry in India. As a leading provider of working capital loans, Lendingkart has already disbursed over INR 11,500 crore (approximately $1.56 billion) worth of loans to more than 1.6 lakh MSMEs in over 4,000 cities in India. With the acquisition of Upwards, Lendingkart will be able to expand its offerings and tap into new markets in the personal loan sector, leveraging Upwards’ advanced technology to simplify the loan application and underwriting process. By combining their respective strengths, Lendingkart and Upwards are poised to bridge the credit gap for underserved segments of the population and help even more people gain access to the financing they need to achieve their goals.

Upwards: A Technology-Driven NBFC for Personal Loans

Upwards is a technology-driven Non-Banking Financial Company (NBFC) that provides instant loans to individuals intending to simplify the personal loan application and underwriting process. Established in 2017, the company is registered with the central bank and is committed to delivering innovative and cost-effective financial services to its customers. The platform has a user-friendly interface, and customers can easily apply for personal loans of up to INR 3 lakh (approximately $4,090). Upwards has integrated advanced technology to maintain the superior quality of credit by analyzing over 500 data points to determine the eligibility of customers. The platform’s proprietary algorithm utilizes machine learning and artificial intelligence to assess the creditworthiness of borrowers and offer them the best-suited loan options. The company’s technology-driven approach allows it to provide a faster loan approval process, with most loans being approved and disbursed within 24 hours. Since its inception, Upwards has disbursed loans of more than INR 500 crore (approximately $68 million) to over 50,000 customers. This is a testament to the company’s commitment to delivering affordable, innovative, and convenient financial services to its customers. Upwards’ focus on leveraging technology to simplify and streamline the loan application process has made it one of the leading digital lending platforms in India. With a team of experienced professionals and a commitment to providing best-in-class financial services, Upwards is poised to continue its growth trajectory and expand its customer base. The platform’s innovative approach to lending has disrupted the traditional lending industry in India and made it easier for customers to access financial services. As the digital lending industry continues to evolve, Upwards is well-positioned to lead the way and transform the way people borrow money.

Lendingkart’s Acquisition of Upwards to Strengthen its Presence in the Personal Loans Sector

Lendingkart’s recent acquisition of Upwards is aimed at addressing the significant credit gap in the personal loan market, especially in Tier 2/3/4 markets. With this acquisition, Lendingkart intends to support the underserved segment of the population and provide them access to much-needed financing. This aligns with Lendingkart’s mission of leveraging technology to provide finance to the underserved. According to Harshvardhan Lunia, Lendingkart’s CEO and founder, the acquisition of Upwards will allow the company to execute its strategy of helping customers obtain personal loans smoothly. Upwards’ expertise in simplifying the personal loan application and underwriting process, leveraging advanced technology, and analysing over 500 data points will enhance Lendingkart’s offerings and ensure superior credit quality. The acquisition is expected to benefit both Lendingkart and Upwards, allowing them to expand their market presence, increase their customer base, and offer more competitive personal loan products.

Upwards to Leverage Lendingkart’s Credit, Capital, and Distribution Capabilities for Deeper Market Presence

With Lendingkart’s credit, capital, and distribution capabilities, Upwards plans to deepen its presence across the country and expand its services to bridge the financial gap in the customer loan segment. Commenting on the acquisition, Upwards’ co-founder, Abhishek Soni, expressed his excitement to team up with Lendingkart and leverage their credit, capital, and distribution capabilities to bridge the massive credit gap in the personal loan market in India.

Lendingkart’s Vision and Growth Trajectory: Bridging the Credit Gap in India

Lendingkart, founded in 2014, has raised around INR 1,050 crore (approximately $143 million) from various external investors, including IndiaQuotient, Fullerton Financial Holdings, Bertelsmann India Investments, Sistema Asia Fund, Mayfield India, and Saama Capital. Lendingkart’s focus on leveraging technology to provide loans to MSMEs has allowed them to disburse over INR 11,500 crore (approximately $1.56 billion) worth of loans to more than 1.6 lakh MSMEs across 4,000+ cities in India. The acquisition of Upwards aligns with Lendingkart’s vision of bridging the credit gap in the personal loan market and catering to the underserved segment, particularly in Tier 2/3/4 cities. With this acquisition, Lendingkart aims to strengthen its position in the personal loan market and provide customers with access to instant loans with the help of advanced technology.

Upwards Acquisition by Lendingkart amidst Indian Government’s Crackdown on Loan Apps with Chinese Links

The acquisition of Upwards by Lendingkart comes amidst the Indian government’s crackdown on loan apps with Chinese links, raising uncertainty about the sector. However, Lendingkart has confirmed that one of Upwards’ investors, Shunwei Capital, will be exiting the company following this acquisition. Lendingkart is spreading its wings in the retail loans segment with this acquisition, which marks the company’s expansion into the personal loan market. Before this, in 2018, Lendingkart had also acquired KountMoney, a lending marketplace that connects creditworthy borrowers to institutional lenders.

Lendingkart’s acquisition of Upwards is a strategic step expected to benefit both companies significantly. With Lendingkart’s focus on providing finance to the underserved, the partnership will allow the company to expand its customer base in Tier 2/3/4 markets and offer more personal loan options to its customers. Upwards’ advanced technology and expertise in the personal loan market will provide Lendingkart with the tools to simplify the loan application and underwriting process. Additionally, the acquisition will allow Lendingkart to tap into new markets and bridge the credit gap for underserved population segments, ultimately benefiting the Indian economy.

In conclusion, Lendingkart’s acquisition of Upwards represents a significant step towards addressing the credit gap in the personal loan market, particularly in underserved Tier 2/3/4 markets in India. The partnership is expected to leverage Lendingkart’s credit, capital, and distribution capabilities and Upwards’ advanced technology to provide a seamless experience for customers seeking personal loans. With the potential to unlock new markets and expand the customer base, the acquisition is a strategic move expected to deliver significant benefits to both companies and the underserved segments of the population in need of access to credit.