Harshvardhan Lunia, the Founder & CEO of Lendingkart, in an interview with CNBC-TV18, underscored the substantial credit gap in India, particularly for micro and small businesses. He stressed the necessity of exploring alternative methods to assess the creditworthiness of these businesses and provide them with essential financial support.

"The credit gap in India is very large. The medium businesses are getting funding but the micro and small businesses are not getting the funding. We think we will have to figure out alternate ways of assessing their creditworthiness and then provide them money. As a fintech company, we are trying to build the journey for the customer in a digital form and fashion where we go out and reach them and alternate credit models are helping us to do that as well," Lunia said.

India, as the world's largest small and medium-sized enterprises (SME) market, plays a pivotal role in contributing nearly a trillion dollars to the economy. The sector, constituting about 36% of India's total manufacturing output, is projected to contribute over $2 trillion to the Indian economy and create 50 million additional jobs by 2024.

Lunia discussed Lendingkart's performance, highlighting the increased credit demand in the SME space during the festive season. He attributed this surge to a more celebratory Diwali season and reported substantial growth for Lendingkart, with disbursements reaching close to ₹6,000 crore, compared to ₹4,000 crore the previous year. The demand surge is particularly prominent in tier-II and lower-tier cities, indicating growing business needs and positive regional performance.

Looking ahead, Lunia outlined Lendingkart's growth trajectory, targeting disbursements of around ₹9,000 crore in the upcoming year. He emphasised the importance of prudent lending practices, considering economic conditions and borrower performance. Despite challenges in consumer credit, Lunia expressed confidence in the resilience of the MSME sector, anticipating it to contribute 50% of India's GDP growth in the next three years.

In addition to Lendingkart, Bhavna Suresh, Founder of 10club, discussed the company's plans for the next phase of growth with the launch of 10ClubHomes. This strategic consolidation of all acquired businesses into a single brand aims to disrupt the $30 billion home and kitchen space market.

Watch the accompanying video for the entire discussion.

(Edited by : Sangam Singh)

First Published:Nov 17, 2023 10:41 PM IST