Pune-based digital lending startup LoanTap has raised ₹56 crores ($8 million) in a combination of debt and equity in its fifth funding round from 3one4 Capital. Existing investors including Kae Capital, India Quotient, Tuscan Ventures, Shunwei Capital and angel investor Ashish Goenka also participated in the funding round.
Founded by Satyam Kumar and Vikas Kumar in 2016, LoanTap provides flexible credits to salaried professionals. The startup also offers EMI free loans, personal overdraft, rental deposit loans and credit card takeover loans. LoanTap focus on monthly cash outflow of salaried professionals.
The startup has received an NBFC licence from RBI and operates within the norms of the central bank. The parent company LoanTap Credit Products Pvt. Ltd. is focused on providing unique products and innovative features and ensures fully transparent pricing. LoanTap offers customized loans which are designed to match the instant consumption patterns of the millennials.
Using advanced technologies, the startup has simplified the processes such as creditworthiness assessment and disbursal mechanism to help users get quick access to credit. Within the first five quarters of its inception, the startup grew profitable and currently records a 12 per cent monthly growth in its loan book.
In a conversation with Inc42, Satyam confessed that the startup used over 95 per cent of its last funding, which it raised from Shunwei Capital in July last year, for onward lending. So, this fundraiser was essential to further continue providing loans to salaried professionals. LoanTap raised ₹44 crores ($6.25 million) from the Beijing-based venture capital firm in July. Investors like Kae Capital, Tuscan Ventures and India Quotient participated in that round.
Prior to that in June 2017, LoanTap raised ₹28 crores ($4 million) from Northern Arc, Kae Capital, MAS Financial Services Ltd, and India Quotient. While in August 2016, the startup raised ₹20 crores ($2.85 million) in series A round from Jaysukh Sapra and India Gifts Hub’s founder Abhishek Pandey. LoaTap has raised a total of ₹148.4 crores ($21.2 million) in four funding rounds.
The digital credit sector in India is expected to reach ₹71 lakh crores ($1 trillion) in the next five to seven years, a report by BCG suggests. And, there has been quite a development in the fintech startups in India for the last five years. Earlier this week, Bengaluru-based ZestMoney raised undisclosed funding from Alteria Capital. Another fintech firm Aye Finance also raised ₹70 crores in a debt funding round.