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.
The startup will deploy the raised capital to enhance their technology such as unified payments interface and e-sign, and expand to 50 cities in India by the end of the year. It has also partnered with six banks and NBFCs to issue credit lines worth Rs 300 crore by the end of the current fiscal year.
Commenting on the funding, Abheek Anand, Principal, Sequoia Capital India Advisors said, “Consumer credit in India is highly under-penetrated and is a complex problem to solve. MoneyTap combines an experienced team with a thoughtfully designed product – and their strong early traction is a testament to the efficacy of their approach to address this massive market opportunity.”
Bengaluru-based MoneyTap was founded in September 2016 by Anuj Kacker, Kunal Varma and Bala Parthasarathy. It is an app-based credit line and provides a flexible loan on demand with zero collateral and without guarantors to the consumer for their personal use.
“We deeply believe that the rapidly growing middle-income group in India is largely underserved by financial institutions. They are app-savvy and very demanding. We have been fortunate to partner with Sequoia, NEA & Prime – all of whom are top-tier investors with deep fintech and operational expertise to take us to the next level,” Bala Parthasarathy, co-founder, MoneyTap said.
The startup runs through a mobile app that evaluates a user’s eligibility, after which it provides the real-time decision on the maximum amount of loan that could be disbursed. A user has the choice to borrow between Rs 3,000 and Rs 5 lakh or up to their maximum eligibility limit. They can also decide the monthly installments and flexible payback periods ranging from 2- 36 months.
The startup claims to have over 3 lakh users, the majority of whom have a monthly income of Rs 30,000-40,000 and are aged between 28-32 years.
The fintech sector has witnessed a lot of investment activity in the last couple of month. Most recently, Paysense has raised $5.3 million in Series A round funding from Singapore-based venture capital firm Jungle venture, South African business conglomerate Naspers and the existing investor Nexus Venture Partners.