Fintech SaaS player Lentra aims to grow revenues 4x in three years, plans IPO on hitting target

Lentra, backed by MUFG Bank and Bessemer Venture Partners, has set itself a high revenue target. ₹1,000 crore from current level by fiscal 2028 ₹220 crore.

Chief Executive Officer (CEO) Ankur Handa said the Pune-based company, valued at around $400 million, plans to grow in the next phase through AI-powered products, premium pricing and deeper penetration into both new and existing accounts. Mint.

SaaS companies around the world are incorporating AI into their operations to prevent disruptions and provide better offers to customers. Mint reported this June. At the same time, companies’ SaaS spending and valuations have also decreased.

“AI has the potential to deliver two to three times revenue growth on existing streams,” Handa said, adding that Lentra expects banks to pay a premium if it improves the accuracy, efficiency and control of bad assets.

Lentra competes in the broader credit technology space with fintech SaaS players such as Kaleidofin, TransBnk, Perfios and TSLC. The company counts HDFC Bank, Kotak Mahindra Bank, IDFC First Bank, among other banks, and TVS Credit, Tata Capital and BharatPe among its NBFC clients.

Founded in 2018 by D. Venkatesh and Handa, Lentra sells software to banks and NBFCs to digitize loan disbursements and downstream workflows such as customer identification, underwriting and collections.

Scale question

The company has so far raised nearly $60 million from investors such as MUFG and Bessemer, as well as Citi Ventures, Susquehanna and Dharana Capital.

But Lentra’s scale still remains a question mark. According to ICRA’s August 2025 report, Lentra’s scale of operations remains moderate despite steady growth over the years, limiting its ability to fully leverage economies of scale.

The report also pointed out the risk of high customer concentration; the top five customers accounted for approximately 60% of FY25 revenue. This comes at a time when the credit ecosystem in India has started to become cautious due to limited consumer spending.

However, Handa said the recent increase in such expenses, backed by monthly installments, especially during the festive season, and the overall growth in secured loans are expected to boost the company’s revenue.

“We were in the process of creating a journey from zero to one. Now the company will transcend the journey from ten to one,” he said.

The next phase of growth will come from adding new customers, cross-selling more, launching AI-led value-added services, and expanding geographically.

According to Abhishek Prasad, managing partner of local venture capital firm Cornerstone Ventures, India’s low credit penetration leaves ample room for growth. “The penetration of products like credit cards is very low compared to peer economies, so there is an incredible opportunity in India when it comes to credit products,” he said.

Platforms that expand access to credit and expand the upper funnel could see strong growth, Prasad added.

According to data from the Reserve Bank of India (RBI), India had over 112 million credit cards as of the end of August, with an annual increase of 6.5%.

How will artificial intelligence help?

The company is in the process of developing AI capabilities for faster adoption and cross-selling to generate more revenue from existing customers for banks and NBFCs.

One such offering would be an AI-powered migration tool aimed at solving a pain point for lenders. “Many banks have legacy systems, and the biggest challenge is moving data safely and efficiently,” Handa said. “We are developing an AI engine to automate all of this – mapping fields, translating business logic, and reducing the process from six months to one week.”

Lentra is also further deepening credit analytics as a service by moving from data plumbing to model-driven decision making. “We use [credit] Handa said the Bureau’s data will create a library of approximately 2,000 derived variables that can be used to create suitability models and risk scorecards.

The company says these value-added, shorter-term offerings, built on top of its core loan origination and management system, will be priced at a premium and increase revenue per customer.

Meanwhile, it continues to deepen its presence in international markets such as the Philippines and Indonesia.

Lentra sees two demand engines within categories: co-lending and embedded finance. The company is working with state-owned lenders like the Reserve Bank of India to connect them to 30-40 NBFCs. For embedded finance, Lentra powers payment financing for e-commerce and in-store embedded loans.

While many companies are experimenting with AI, 95% of productive AI pilots fail to deliver measurable profit gains at the enterprise level, according to a widely cited MIT report published in 2025.

Prasad said that while financial institutions are starting to pay a premium for AI-powered SaaS products, demand for the value proposition is also strong.