Lendingkart Finance, the NBFC arm of the Lendingkart Group backed by Singapore’s Temasek, has reported a major loss of ₹288 crore for FY25. This marks a sharp drop from the ₹60 crore profit the company made in the previous year.
The main reason behind the loss was a big increase in loan defaults and lower income from lending. Its total pre-tax loss stood at ₹396 crore, and its interest income fell by 20% to ₹812 crore. On top of that, fee income also dropped by 57.5%, and overall expenses shot up by nearly 18.5%.
In January 2024, Lendingkart had raised ₹75 crore through secured bonds with the condition that it remains profitable. Now that the company is in loss, this clause has been breached. However, sources say bondholders are likely to waive the clause because interest payments are still being made on time, and the bonds are backed by Lendingkart’s parent company.
The company’s loan book shrank by 35% to ₹1,382 crore, and bad loans (Gross NPA) rose to 4.33%, compared to 2.9% last year. The Reserve Bank of India’s new rules on capital adequacy also impacted Lendingkart’s financial health.
Despite these setbacks, Lendingkart is still receiving support. Its key investor, Fullerton Financial Holdings, increased its stake in the company to 44% by investing ₹77 crore. It’s also planning to invest ₹252 crore more, which would give Fullerton a majority stake, pending approvals.
With rising loan defaults and shrinking revenue, FY25 was a tough year for Lendingkart. However, fresh capital and strong investor backing may help the company recover and stabilize in the coming months.
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