Lendingkart
India SME lending platform, fighting internal collapse more than outside rivals.
On the record
Checkpoint: NCLT Ahmedabad bench ruling on Lunia vs Fullerton dispute
The call
Lendingkart's crisis is a boardroom and balance sheet fight, not an AI or product problem, and its survival depends on whether Fullerton's capital and control actually stick.
Lendingkart lends money to small businesses in India, but its lending business has almost stopped (down 95%), and the company is losing money faster. The company has real advantages that are hard to copy, like its license from India's central bank and its customer relationships, but these do not matter when the company is bleeding money and the owners are fighting in court over control. The key thing to watch is whether the company can actually start lending again at real levels over the next year, or whether it is just shrinking and will never recover.
Why
01
AI pressure: None apparent. AI-driven underwriting rivals aren't the issue; the business is shrinking before any AI competitor could take share. Could AI do the core job? Only partly.
02
Bigger players: Fullerton Financial Holdings (Temasek unit, now majority owner). Fullerton took majority control, ousted founder Lunia, and now runs the company through a board fight in NCLT. Could a giant copy it? Probably.
03
What protects it. Its NBFC license and RBI-regulated balance sheet still let it lend and raise bonds, if capital arrives.
What would change this call
Ahmedabad NCLT bench rules on Lunia vs. Fullerton dispute. Shows whether control conflict resolves or drags on, blocking recovery.
FY27 quarterly disbursals stay in Rs17-50 crore/month band vs rising above Rs100 crore. Distinguishes real turnaround from cost-cutting disguised as rebuild.
Fullerton's Rs2,000 crore capital infusion actually lands in bank accounts. Shows whether promised rescue funding is real or stalled.
FY27 quarterly disbursals stay in Rs17-50 crore/month band vs rising above Rs100 crore. Distinguishes real turnaround from cost-cutting disguised as rebuild.
Fullerton's Rs2,000 crore capital infusion actually lands in bank accounts. Shows whether promised rescue funding is real or stalled.
Key numbers
- Monthly disbursals fell from Rs340 crore to Rs17 crore
- FY26 net loss widened 16% to Rs333.3 crore
- Valuation dropped from ~$700M to under $100M
Named risks
- Unresolved NCLT litigation between founder Lunia and Fullerton could disrupt management control.
- Bond covenant breach and possible bondholder waiver needs threaten liquidity and credit rating.
- Disbursals near-halt (Rs 17 crore/month) signals the business may be in managed decline, not recovery.
- Further dilution from proposed Rs 850 crore rights issue and Rs 2,000 crore capital infusion.
- Unresolved Upwards acquisition litigation seeking Rs 80-90 crore compensation.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Aye Finance | losing to | Aye Finance advancing toward IPO, benchmarked against SBFC and Five-Star as of 2026-02-06 |
| SBFC Finance | losing to | SBFC is listed and growing while Lendingkart's AUM shrank 35% in FY25 |
| Five-Star Business Finance | losing to | Five-Star operates as a healthy listed peer while Lendingkart posted Rs 333.3 crore FY26 loss |
| Indifi Technologies | contesting | Named direct MSME-lending fintech peer in July 2025 competitive landscape review |
| NeoGrowth | contesting | Named direct competitor in POS/daily-repayment MSME lending as of 2025-07-26 |
Questions people ask
- Is Lendingkart profitable in 2026?
- No. Lendingkart Finance's net loss widened 16% to Rs 333.3 crore in FY26 (year ended March 2026), following a Rs 288.3 crore loss in FY25, versus a Rs 60.1 crore profit in FY24. Revenue fell 62% even as costs were cut, per inforcapital.com, 2026-05-29.
- Who owns Lendingkart now?
- Fullerton Financial Holdings, a Temasek subsidiary, took majority control on 27 March 2025, raising its stake to roughly 56% then reportedly 77%, per The Ken (2026-06-07). Founder Harshvardhan Lunia was removed as MD effective June 2025 and replaced by ex-DBS executive Prashant Joshi.
- Is Lendingkart in financial trouble?
- Yes. Monthly disbursals fell from Rs 340 crore in May 2024 to Rs 17 crore by August 2025, per Lunia's NCLT filing reported by Economic Times B2B (2025-11-24), while its FY25 loan book shrank 35% and it breached a bond covenant requiring pre-tax profitability.
- Who is Lendingkart's biggest competitor?
- Direct MSME lending peers include NeoGrowth, Indifi, FlexiLoans, Aye Finance, Kinara Capital, U Gro Capital, and Vivriti Capital, per a July 2025 competitive-landscape review. Aye Finance is pursuing an IPO and being benchmarked against listed NBFCs SBFC Finance and Five-Star, per ipocentral.in (2026-02-06).
- Could AI replace Lendingkart's lending business?
- Lendingkart's core edge, analytics-driven MSME credit scoring, is an early automated-decisioning model now commoditizing, but its NBFC license, loan book, and RBI compliance infrastructure via Lendingkart Finance are not things a pure AI tool can replicate without capital and regulatory approval, per the brief's structural assessment.
- What is the Lendingkart founder dispute about?
- In November 2025, founder Harshvardhan Lunia filed an NCLT petition at the Ahmedabad bench alleging oppressive, mala fide conduct by Fullerton-led management and over 90% value destruction, per Economic Times B2B (2025-11-24). Lendingkart denies the allegations; the case remains unresolved as of mid-2026.
Timeline
- 2026-07-10Fullerton reportedly plans Rs 2,000 crore infusion into Lendingkart Finance to rebuild loan book
- 2026-05-29FY26 net loss widens 16% to Rs 333.3 crore; revenue falls 62%
- 2026-01-27ICRA withdraws rating on securitized Lendingkart Finance paper
- 2025-11-24Lunia files NCLT petition against Fullerton; disbursals reported at Rs 17 crore/month
- 2025-09-30Lendingkart raises Rs 100 crore debt from InnoVen Capital
- 2025-07-12FY25 results show Rs 288.3 crore net loss, reversing Rs 60.1 crore FY24 profit
- 2025-06-30Lunia steps down as Lendingkart Finance MD; Prashant Joshi named CEO
- 2025-06-03Lendingkart Finance discloses FY25 loss and breach of Rs 75 crore bond covenant
- 2025-03-27Fullerton Financial Holdings takes majority control; valuation cut from ~$700M to under $100M
- 2020-05-23Lendingkart lays off 200 employees, 30-50% of staff, during COVID
Revision history
26 July 2026
First assessed. Little protection left. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Lendingkart's last stand: a founder, a Temasek unit, an outdated deal, and a $600M wipeout (2026-06-07)
- Lendingkart crisis deepens as Lunia initiates legal action against Fullerton-led management (2025-11-24)
- Lendingkart Finance Posts INR 288 Cr Loss In FY25 (2025-07-12)
- Lendingkart Finance reports losses, breaches bond covenant for 2024-25 (2025-06-03)
- Lendingkart Finance Faces Widening Losses (2026-05-29)
- Lendingkart Number of Employees 2026 (2026-06-29)
- Lendingkart Latest News 2026 (2026-05-28)
- Lendingkart set to raise $100 Mn in Series F (2024-11-24)
- ET topic page: lendingkart technologies news (2026-07-10)
- ICRA rating rationale for Lendingkart Finance Limited (2026-01-27)
- Lendingkart's Founder On Balancing Growth, Regulation And Public Market Expectations (2025-03-14)
- Lendingkart Funding 2026, Total Funding, Rounds & Investors (2026-05-28)