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Fintech firm Lendingkart on Friday said its existing investor Fullerton Financial Holdings (FFH) has picked up a controlling stake in the company for Rs 252 crore.

FFH, the subsidiary of Singapore-based investment company Temasek, will help Lendingkart scale up its micro, small, and medium enterprises (MSMEs) lending in India.

According to data website Tracxn, FFH currently holds around 38.1% stake in the company.

“FFH’s mission since inception is to be the catalyst in enriching lives and enabling success of customers and communities served by our portfolio companies across Asia. Our investments in Lendingkart are a testament to our continued belief in the MSME opportunity in India and that well governed, scalable franchises can bring significant value to small businesses,” said Hong Ping Yeo, CEO of FFH.

The announcement comes a day after The Economic Times reported, citing sources that Lendingkart has run into a cash crisis and is “staring at a massive valuation cut” due to stress in the unsecured loan market.

“We are excited to further deepen our partnership with Fullerton Financial Holdings (FFH) in what will truly be a transformative phase of our journey. This investment represents a vote of confidence in Lendingkart’s ability to transform the MSME lending landscape. Our goal is to replicate FFH’s past successes in the Indian financial market. With FFH’s backing, we aim to bring more small businesses into the formal lending ecosystem and stay true to our mission: Simplifying MSME Finance,” said Harshvardhan Lunia, Founder and Managing Director of Lendingkart.

Founded in 2014 by Lunia, the fintech firm swung to profit in FY23 with a profit after tax of Rs 118.81 crore, marking a turnaround from the loss of Rs 203.36 crore in the previous year.

In May, the MSME lending platform raised $10 million via external commercial borrowing from a BlueOrchard fund.