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.
“We lend up to $14.5K (INR 10 Lakh) with an average of $4.3K (INR 3 Lakh) for an average period of around 48 months. We have managed to retain the non-performing asset level to less than 0.35% as of our March balance sheet,” said Kumar.
Prior to this, LoanTap had raised a $4 Mn Series B funding round in June 2017 from Kae Capital, India Quotient, IFMR, and MAS Financial Services Ltd.
The Indian fintech market is estimated to touch $2.4 Bn by 2020. Apart from LoanTap, other startups in the consumer lending space include Lendingkart, FlexiLoans, KredX, Capital Float, and MoneyTap, among others.
[The development was reported by ET.]