Pune-based online lending startup LoanTap has received a fresh infusion of INR 84.9 Cr ($12 Mn) in Series B funding round. The round was led by Avana Capital, with participation from existing investors; 3one4 Capital, India Quotient, Shunwei Capital and Kae Capital.\r\n\r\nLast evening, reports cited Ministry of Corporate Affairs filings, the company has approved allotment of 10 equity shares and 84,730 preference shares at INR 4,660.7 per share. As per details available, Avana Capital invested INR 25.49 Cr and Shunwei, as well as, India Quotient invested INR 6.99 Cr each.\r\n\r\nPrior to this round, LoanTap has raised $25 Mn from investors such as 3one4 Capital, Shunwei Capital, Kae Capital, India Quotient, Tuscan Ventures and angel investor Ashish Goenka.\r\n\r\nFounded in 2016 by Vikas Kumar and Satyam Kumar, LoanTap offers flexible loan products to salaried professionals. It also offers EMI free loans, personal overdraft, rental deposit loans and credit card takeover loans which focus on monthly cash outflow of salaried professionals.\r\n\r\nLoanTap is registered as LoanTap Credit Products Pvt Ltd with the RBI. It operates as an NBFC, which offers unique products and features within the regulatory guidelines and ensures a fully transparent pricing structure.\r\n\r\nAnjali Bansal, founder of Avaana Capital, said, \u201cLoanTap is using latest technology and has developed a robust underwriting process to build a high-quality portfolio. We believe that LoanTap is well positioned to emerge as a lender of choice for millennials and middle India. Keeping customer cash flow needs at the centre of product design provides more flexibility to the consumer while reducing risk\u201d\r\n\r\nAccording to the startup, the customised loans offered by them are designed to match the instant consumption patterns of the millennials. The startup claims to use the latest technologies for the loaning process such as loan application, creditworthiness assessment and disbursal mechanism, to help users get faster access to credit.\r\n\r\nLoanTap had become profitable within the first five quarters of its operation and its loan book is growing at 12% on a monthly basis.\r\n\r\nAccording to a BCG report, the country\u2019s digital lending market has the potential to become a $1 Tn ( INR 71 Lakh Cr) opportunity in the next five years. A 2017 EY report, The Battle For The Indian Consumer of 2017, said that India\u2019s adoption index for lending is 20% as compared to global 10%.\r\n\r\nThe report further noted that an increasing number of fintech firms are tying up with merchants and service providers to provide affordable financing options at the point of sale. Niche products are being developed in conjunction with these merchants, utilizing customers\u2019 transactions histories and other available data points to evaluate their creditworthiness.\r\n\r\nAlong the lines of digital lending, players such as ZestMoney, AyeFinance etc have been providing loans to B2B and B2C loans i.e. to SMEs, as well as individuals, while players such as EarlySalary, Credy, Qbera, EarnWealth, etc enable B2C i.e. customer loans.\r\n\r\nAccording to the Global Fintech Report Q1 2019, more than 1 Mn borrowers and 2 Mn lenders have transacted with lending platforms, with the overall exposure remaining at INR 350 Cr. Further, between 2015 and Q1 2019, the total investment in Indian fintech startups was $7.62 Bn, out of which 25.49% ($1.94 Bn) was for lending tech startups, according to DataLabs by Inc42.