Lending startup LoanTap has raised $4 Mn in the latest round of funding. The funding round saw a mix of equity and debt capital received from the Kae Capital, India Quotient and other angel investors whereas the debt is raised from IFMR and MAS Finance.
As per the company plan, the raised capital will be utilized in building a loan book and to enhance the collection features in its software. The company also wants to expand its footprints in other cities such as Chennai, Bhopal, Indore and Raipur.
Commenting on the investment, Madhukar Sinha, co-founder at India Quotient said, “We saw strong demand reflecting in the growth since our last round of investment and we believe that innovative personal loan products from LoanTap would serve a large segment not served by traditional banks.”
Loantap, an online personal loan company was started in May 2016 by Satyam and Vikas Kumar. Satyam who comes with over 17 years of experience in the loans business, having worked with some of the leading banking organization such as IndusInd Bank, Deutsche Postbank, ICICI Bank and ICI India.The other co-founder, Vikas has about 16 years of experience. He founded Brainvisa, a Pune-based e-learning firm and exited in 2010. He is also an investor in a few startups such as Unbxd, Mobikon
The other co-founder, Vikas has about 16 years of experience. He founded Brainvisa, a Pune-based e-learning firm and exited in 2010. He is also an investor in a few startups such as Unbxd, Mobikon Technologies and others. As a part of IAN, he advises startups on technology and strategy front.
Commenting on the development, Satyam Kumar, CEO, LoanTap said, “We have been able to demonstrate that, for discerning millennials, product experience far outweighs upfront pricing modules adopted by traditional lenders in India. Customers are choosing products that deliver flexibility, seamless experience, and lifetime cost advantage over perceived financial benefits.”
LoanTap follows an agency-based collection model and caters to the low delinquency salaried segment with job experience of two to five years. The company disburses loan amount directly through its in-house, RBI-registered NBFC to ensure a transparent pricing structure.
Users can avail products ranging from regular EMI-based loans, EMI free loans, to the personal line of credit. Borrowers can also choose custom-made loan products like overdraft facility, credit card takeover loans, rental security deposit loans, advance salary loans, and consumer durable loans.
LoanTap claims to receives 5,400 to 6,000 loan enquiries every month. Out of these about 600 files make the initial cut and travel through the credit process.
Fintech startups are being pampered by the investors, VCs and HNIs. The sector is receiving an overwhelming response from across the users and partners.
Most recently, FinTech Startup MoneyTap has raised $12.3 million in its Series A round of funding led by Sequoia India along with existing investors New Enterprise Associates (NEA) and Prime Venture Partners.