Fintech Startup MoneyTap Raises $12.3 Mn From Sequoia India, Others

Fintech Startup MoneyTap Raises $12.3 Mn From Sequoia India, Others


MoneyTap Currently Has 300K Users On Its Consumer Lending Platform

Consumer lending startup MoneyTap has raised about $12.3 Mn funding in a round led by Sequoia India. Existing investors New Enterprise Associates and Prime Venture Partners also participated in the round.

Bengaluru-based MoneyTap was launched in September 2016 by Bala Parthasarathy, Anuj Kacker, and Kunal Varma.

MoneyTap is an app-based credit line. It provides flexible loan for personal use. The startup is targeted at salaried individuals and self-employed professionals earning more than INR 20,000 per month.

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.”

The startup will use the recently raised funds to drive the expansion of its app-based consumer credit line in India. The funds will help strengthen leadership position by improving credit accessibility for other segments of customers.

As per an official statement, the app-based consumer credit line has attracted over 300K users. The majority of users have a monthly income of INR 30,000- INR 40,000 and are aged between 28-32 years.

MoneyTap claims to evaluate the user’s eligibility in less than four minutes. Post accepting this eligibility, it provides a real-time decision on the application along with the amount the borrowers are eligible for. Using the credit line, users can choose to borrow between INR 3,000 to about $7,777 (INR 5 Lakhs), or up to their maximum eligibility limit.

Users can decide on EMI plans with payback periods ranging from two months to three years. Interest is paid only on the amount borrowed.

Bala Parthasarathy, co-founder, MoneyTap said, “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.”

MoneyTap is currently partnering with six other banks and NBFCs and expanding to 50 cities in India by the end of 2017. The startup is aiming to issue credit lines worth about $46.6 Mn (INR 300 Cr) by the end of the current fiscal year.

The Indian fintech market is forecasted to touch $2.4 Bn by 2020, a two-fold increase from the market size currently standing at $1.2 Bn. In May 2017, another consumer lending startup EzCred raised more than $1 Mn from a consortium of investors. The investors included Dheeraj Pandey, CEO of Nutanix; Rajesh Yohannan, former MD and CEO of Oanda Asia Pacific; and Akash Garg Director of Engineering at Uber. Earlier the same month, Pune-based fintech startup EarlySalary raised $4 Mn Series A funding from IDG Ventures India (IDGVI) and Dewan Housing Finance Corp Ltd (DHFL).

Apart from MoneyTap other startups in the consumer lending space include Lendingkart, FlexiLoans, KredX, Capital Float, etc.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

Unlock 60% OFF
Cancel Anytime
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Fintech Startup MoneyTap Raises $12.3 Mn From Sequoia India, Others-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Fintech Startup MoneyTap Raises $12.3 Mn From Sequoia India, Others-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Fintech Startup MoneyTap Raises $12.3 Mn From Sequoia India, Others-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Fintech Startup MoneyTap Raises $12.3 Mn From Sequoia India, Others-Inc42 Media
Fintech Startup MoneyTap Raises $12.3 Mn From Sequoia India, Others-Inc42 Media
You’re in Good company