Leadership exodus deepens Lendingkart’s troubles as losses mount in FY25

The crisis unfolded as founder Harshvardhan Lunia resigned as Managing Director of Lendingkart Finance on June 30, following his earlier CEO exit and a broader leadership shake-up after Fullerton Financial Holdings acquired majority control

A wave of high-level exits has rocked fintech firm Lendingkart, coinciding with a sharp financial downturn for its lending arm, Lendingkart Finance, which reported a net loss of ₹288.3 crore for FY25. The crisis began with founder Harshvardhan Lunia stepping down as Managing Director of Lendingkart Finance on June 30, shortly after relinquishing his CEO role at the parent company. His exit follows that of several other top executives, amid a leadership overhaul triggered by a majority acquisition by Fullerton Financial Holdings (FFH), a Temasek-owned entity.

FFH acquired a controlling stake in Lendingkart Technologies for ₹252 crore in October 2024, a move cleared by the Reserve Bank of India in March 2025. Post-acquisition, Prashant Joshi, a former senior executive at DBS Bank, was appointed CEO. The leadership vacuum — including the earlier departure of co-founder Mukul Sachan — comes at a time when the company is facing severe financial headwinds.

For FY25, Lendingkart Finance’s total revenue plunged 24.4% year-on-year to ₹867 crore, down from ₹1,146 crore in FY24. The company's profit trajectory has reversed sharply since FY23, when it reported ₹118.8 crore in profit — a figure that dropped to just ₹3.4 crore in FY24 before turning negative.

Mounting costs and regulatory heat

Rising impairment costs have been a major drag. Impairments more than doubled to ₹523.5 crore, making up 41% of total expenses. Finance costs also rose to ₹297.8 crore, while employee benefits climbed to ₹164.7 crore. Overall, expenses increased 18.5% to ₹1,263.5 crore.

Adding to its woes, Lendingkart has been hit by tightened RBI regulations on unsecured lending, increasing risk weights on such credit and pushing up the cost of funds. This regulatory shift has rendered unsecured lending more capital-intensive and risky for NBFCs.

Founded in 2014, Lendingkart has raised over $370 million from global investors. However, with declining profitability, regulatory hurdles, and leadership churn, the company is now in a critical phase. Its recent move to secure ₹100 crore in venture debt from InnoVen Capital signals urgent efforts to recalibrate strategy and restore stability.