Digital lending startup for salaried professionals, LoanTap has raised $6.25 million in an equity funding round led by Beijing-based venture capital firm Shunwei Capital.
The funding round also saw participation from new investors Tuscan Ventures and Ashish Goenka (owner of Suashish Diamonds) and existing investors India Quotient and Kae Capital.
With the fresh capital, the Pune-based fintech startup will improve its loan book and lure more customers to offer its services.
Founded in May 2016 by Satyam Kumar and Vikas Kumar, LoanTap has an in-house NBFC platform delivering ten different loans such as EMI Free loans, personal loans, credit card takeover loans, advance salary, rental deposits, wedding loans, and others at an annual interest rate of 18 per cent.
With average loan size of Rs 3 lakh, the firm lends up to Rs 10 lakh for an average period of around 48 months.
So far, LoanTap claims to have disbursed Rs 100 crore to more than 5,000 customers, mainly for their personal requirements like travel and wedding expenses.
At LoanTap, the borrowers are mainly salaried people from service sectors, who have a monthly income of Rs 30,000 to 2 lakh per month, and normally take loans for a period of 4-5 years.
The startup competes with well-established players in this space such as Capital Float, Lendingkart, Flexi loans, Money Tap, CreditMantri, including several others.
Shunwei Capital is a venture capital firm started by Xiaomi founder Lei Jun. Previously, in the fintech space, it invested in Bengaluru-based microlending platform KrazyBee.
Interestingly, Xiaomi through its investment arm Shunwei is also planning to offer loan to salaried professionals in India via KrazyBee.
Previously, LoanTap had raised $3 million Series A funds from Mumbai-based HNIs Abhishek Pandey and a few others. In 2017, it raised another round of $4 million in Series B funding led by Kae Capital, India Quotient, IFMR, and MAS Financial Services along with angel investors.
The development was reported by ET.