Bengaluru-based digital lending company LoanTap has raised $6.25 Mn (INR 43 Cr) in an equity funding round led by Beijing-based venture capital firm Shunwei Capital.
Mumbai-based private investment firm Tuscan Ventures and Ashish Goenka, the owner of Suashish Diamonds, along with existing investors India Quotient and Kae Capital, also participated in this funding round.
LoanTap, which uses technology to deliver smart and innovative products for millennials, was launched in early 2016 by Satyam Kumar and Vikas Kumar. It is a digital lending platform delivering flexible EMI-free loan products to salaried professionals. Borrowers can choose custom-made loan products from an array of offerings like overdraft facility, credit card takeover loans, rental security deposit loans, advance salary loans, and consumer durable loans.
Registered as LoanTap Credit Products Pvt Ltd with the RBI, the startup is, in essence, an NBFC offering unique products and features within the regulatory guidelines, and ensures a fully transparent pricing structure.
“Our plan is to leverage this funding by four to five times to source around $29.1 Mn (INR 200 Cr) from lending institutions, which will be used to lend out to more consumers,” said Satyam.
The company claims to have so far disbursed $14.5 Mn (INR 100 Cr) to more than 5,000 customers and counts 35% of its customers from Bengaluru.