Fintech SaaS firm Lentra bags $27 million in extended Series B

Synopsis Lentra is a software-as-a-service (SaaS) provider that helps banks and financial institutions digitise credit disbursal and helps them in various aspects of loan servicing, including know-your-customer (KYC) compliance, collections, etc. ETtech Lentra founder D Venkatesh Cloud-based lending software provider Lentra has raised $27 million in an extended series B round to make way for strategic investors on its cap table, founder and CEO D Venkatesh told ET in an interaction. He added that MUFG Bank and Dharana Capital have invested at a $400 million dollar valuation, the same valuation at which the company had raised $60 mn in its series B round in November 2022.

Returning investors Bessemer Venture Partners, SIG Venture Capital , and Citi Ventures had put in the capital back then. Japan’s Mitsubishi UFJ Financial Group (MUFG) Bank participated in the current round through its MUFG Ganesha Fund, a late stage venture capital fund. The deal marked the first joint investment by the bank and MUFG Innovation Partners, a venture capital firm under the MUFG group.

MUFG will help Lentra explore synergies within the group, including with its strategic partner banks in southeast Asia. “This partnership affirms our commitment to be at the forefront of supporting digital innovation in India, and its expansion to other geographies,” Shashank Joshi, deputy chief executive, MUFG India, said. “The Lentra team has scaled the business in a highly capital efficient manner and is well positioned to benefit from the digitisation tailwinds across markets,” Vamsi Duvvuri, founder and managing partner, Dharana Capital, added.

Lentra extended its presence to Vietnam, the Philippines, Indonesia, and the United States after its November funding . In May 2023, it launched its loan management system, 1LMS, which helps lenders fulfill the needs of borrowers, in a strategic partnership with Google Cloud. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories “We will look at Thailand as the fourth country in the ASEAN block.

Our priorities right now remain what we had decided back in November, to expand our presence in Indonesia, Philippines, Vietnam, and the US through the September quarter of 2023,” Venkatesh said. Founded in 2018 by Venkatesh and Ankur Handa, Lentra is a software-as-a-service (SaaS) provider that helps banks and financial institutions digitise credit disbursal and helps them in various aspects of loan servicing, including know-your-customer (KYC) compliance, collections, etc. The company hit $20 million on a last twelve months (LTM) revenue basis in the financial year ended March 2023.

It has managed to double its revenues every 12 months, and aims to make that six months, Venkatesh added. By FY23-24, the Pune-based company aims to touch $45 million in LTM revenue, with the dollar to rupee conversion at about Rs 80, Venkatesh explained. He added that the exit revenue would be at about $55 million.

Exit revenue refers to the revenue expected in the fourth quarter of FY23-24, multiplied by four. The overall team size has scaled to 800, against February 2022, when it was about 300. “Because we’re a product company, we’re adding a lot of products now.

But we will saturate at a headcount of about 1,200-1,300, unless we do something outside banking,” he added. Don’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. click here! Wednesday, 07 Jun, 2023 Experience Your Economic Times Newspaper, The Digital Way! Read Complete Print Edition » Front Page Pure Politics Companies Around the World More Auto Cos Await Clarity on PLI Subsidy for FY23 More than a year after the ₹25,938 crore production-linked incentive (PLI) scheme for India’s auto sector came into effect, qualified manufacturers await clarity on whether they will receive sops for the first year of the programme.

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Sequoia India & SE Asia Split from US Sequoia Capital, the marquee Silicon Valley investor in early-stage companies, has broken away from its India and China partnerships, signalling a retreat from Asia for the fund that had backed technology giants Apple and Google in its early days. Read More News on lentra software as a service Venture Capital Funding Fundraising Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.

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