Now funding of fintech start-ups has become a word of mouth phenomena and the industry is taking a leaf out of Foodtech’s book. Mumbai based online lending startup LoanTap in a fresh round of funding, has raised $4 million from Kae capital, India Quotient, IFMR and MAS Finance along with other angel investors.
This deal is a mix of equity and debt instruments. The equity infusion of Rs 10 crore, was led by Kae Capital and India Quotient while the rest of the capital came in the form of debt from IFMR, Muthoot Finance and MAS Finance.
On funding, Satyam Kumar, CEO LoanTap said, “The capital will be used mainly for onward lending. With this capital infusion, LoanTap is planning to target and give loans to over 5,000 individuals, especially millennials, in the next six months.”
LoanTap was founded in May 2016 by ex-banking professional Satyam Kumar and former tech professional Vikas Kumar. LoanTap has an inhouse NBFC platform delivering flexible EMI-free loan and overdraft products to salaried professionals as well as personal loans, rental deposit among other products.
The company claims to stand out for its speedy disbursement of loans with an average amount of Rs 4 lakh for 15 days to five years. It also makes a pitch for flexible single and bulk payments that are convenient and cost-effective.
LoanTap is not an aggregator platform instead it directly dispenses loans through its in-house NBFC platform.
The company is also set to launch in new cities such as Chennai, Bhopal, Indore and Raipur. “Satyam and Vikas (co-founder) together bring strong expertise in credit, sales and technology. They have demonstrated strong growth and are able to differentiate with their innovative products and processes, which make their value proposition very compelling,” Navin Honagudi, investment director at Kae Capital, said in a statement.
Last year LoanTap secured $3 million in Series A round of funding in just 3 months of their launch from High Net Worth Individuals (HNIs) Abhishek Pandey and Jaysukh Sapra.
It competes with Lendingkart, Capital float, FlexiLoans, Early Salary, to name a few.
Of late, we see more fintech startups have been funded than any other industry. On June 22 another fintech startup Kissht raised $2 million from early stage investors Endiya Partners and Ventureast while MoneyTap raised $9 million in series A led by Sequoia India and Early Salary raised $4 million from IDG Ventures India and others.
In the month of June, thirteen fintech start-ups have got funded till now. Out of these thirteen, nine startups got $73 million funding and rest four startups investment were undisclosed.