LoanTap Bags INR 74 Cr To Bolster Supply Chain Financing

SUMMARY

LoanTap has secured INR 74 Cr in a mix of equity and debt round of funding

The company raised INR 54 Cr in equity, while the remaining INR 20 Cr was raised via venture debt

The capital raised will facilitate the expansion of its supply chain financing offerings for small retailers

Pune-based fintech startup LoanTap has raised Pre-Series C funding of INR 74 Cr (around $8.6 Mn) in a mix of equity and debt infusion.

The company raised INR 54 Cr (around $6.3 Mn) in equity, led by July Ventures with additional participation from existing investors, including 3one4 Capital, Avaana Capital, Kae Capital and Swapurna Family Office.

Additionally, it bagged INR 20 Cr via venture debt to facilitate the expansion of its supply chain financing offerings for small retailers.

Founded in 2016 by Satyam Kumar and (late) Vikas Kumar, LoanTap was set up as an online lending platform, offering personal loans, business loans, special purpose loans, among others. The company’s credit solutions are built to address the gap through its proprietary credit assessment engine, Business Indicator for Credit Ratings in India (BICRI).

Last month, LoanTap’s cofounder and chief technology officer Vikas passed away in an accident.

Excluding the current round of funding, the startup has raised about $36 Mn since its inception, from investors, including India Quotient, Shunwei Capital and Tuscan Ventures, among others.

The lendingtech startup acquired healthcare-focused fintech startup Unofin for an undisclosed amount, in 2023, to provide affordable financing options for healthcare needs.

“India’s MSME sector is undergoing a massive transformation, and we plan to use this momentum to double down on invoice financing, an area we see as a powerful enabler for MSME growth across India,” Satyam said.

The development comes at a time when numerous fintech startups have been raising capital to boost their product offerings in the lending space as well as expand their footprint.

For instance, Inc42 exclusively reported Lendingkart’s capital raise of INR 100 Cr, a week ago, while neobanking startup Kaleidofin raised $5.3 Mn, in early May.

Notably, the fintech sector has been the most funded sector in 2024, with over 162 deals raising a total of $2.5 Bn, an Inc42 data showed.

Further it also projects the overall Indian fintech market opportunity to reach over $2.1 Tn, growing at a CAGR of 18% by 2030.