Lendingkart Finance, the non-banking financial arm of fintech startup Lendingkart Technologies, reported a sharp downturn in its financial performance for FY25, slipping into a net loss of ₹288.3 crore. This comes after reporting a modest profit of ₹60.1 crore in the previous fiscal. The company’s operating revenue also fell significantly by 24.5% year-on-year to ₹862.2 crore, down from ₹1,142 crore in FY24. When combined with other income sources, the total revenue stood at ₹867 crore, a 24.4% drop from the prior year.
This marks the continuation of a steep decline in profitability since FY23, when the NBFC had first turned profitable with ₹118.8 crore in net profit. By FY24, that figure had already plummeted 97% to just ₹3.4 crore before crashing entirely into the red in FY25.
Senior Management Turmoil Amid Investor Takeover
The financial turbulence comes at a time of significant upheaval within the company’s leadership. Founder Harshvardhan Lunia stepped down as managing director of Lendingkart Finance on June 30. The departure follows a string of high-profile exits across the Lendingkart Group, including at least eight top executives in the past year.
These exits coincided with Fullerton Financial Holdings (FFH), a Temasek-owned entity, acquiring a majority stake in Lendingkart Technologies for ₹252 crore in October 2024. The transaction was approved by the Reserve Bank of India (RBI) in March 2025. Post-acquisition, Lunia also stepped down as CEO of Lendingkart Technologies and was succeeded by Prashant Joshi, a former DBS Bank executive.
Co-founder Mukul Sachan had previously exited in 2019 after serving as Lendingkart Finance’s CEO. The leadership vacuum at both the parent company and its NBFC arm has added to uncertainty amid mounting regulatory and operational challenges.
RBI Policy Changes and Rising Expenses Deepen Woes
A closer look at Lendingkart Finance’s FY25 financials reveals that impairment of financial instruments was the most significant cost driver. At ₹523.5 crore, impairment expenses made up over 41% of the company’s total expenses, doubling from ₹256.3 crore in FY24. Impairment losses refer to assets—primarily loans—that are unlikely to be recovered.
The company also saw a rise in employee benefits, which increased 11.8% year-on-year to ₹164.7 crore. Finance costs climbed to ₹297.8 crore, up from ₹270.9 crore last fiscal. Total expenses rose 18.5% to ₹1,263.5 crore compared to ₹1,066.1 crore in FY24.
The broader regulatory environment also played a role in the downturn. In late 2023, the RBI tightened norms on unsecured lending, increasing risk weights on consumer credit exposures. This drove up the cost of funds for NBFCs like Lendingkart Finance and made unsecured lending more capital-intensive.
In an earlier interview, Lunia had already warned that FY25 would likely see diminished profitability due to shrinking Assets Under Management (AUM), rising borrowing costs, and pressures from new regulatory frameworks and macroeconomic factors.
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Strategic Adjustments or Deeper Trouble?
Founded in 2014, Lendingkart Technologies has raised over $370 million(₹3,165 crore) from investors like Stride Ventures, BlueOrchard, and Yubi. In addition to Lendingkart Finance, the group also owns Upwards Fintech Services (offering personal loans) and previously operated Finectar Technologies, which was dissolved in July 2024.
In May 2025, the company reportedly sought ₹100 crore in venture debt from InnoVen Capital to manage operational and strategic pivots.
The current situation marks a pivotal moment for Lendingkart Group. The combination of mounting impairment costs, leadership reshuffle, and regulatory tightening raises questions about the sustainability of its NBFC model. With a new CEO in place and Fullerton Financial’s backing, the company must now recalibrate its strategy to navigate the evolving fintech and lending landscape.