Fintech consumer lending startup MoneyTap has secured Rs 500 crore in a Series B funding round led by Aquiline Technology Growth (ATG), RTP Global, and Sequoia India.
Existing investors, including Prime Venture Partners and MegaDelta, also participated in the latest investment round. This brings the total capital raised by the firm to around $82 million.
With the infusion of new funds, the Bengaluru-based company is planning to grow its loan book to Rs 5000 crore in the next one year, bolster its technology, data science, and launch its own non-banking financial company (NBFC), said the company in a press statement.
Notably, the company had secured an NBFC license from the Reserve Bank of India last year.
Currently operational in more than 45 cities including Ahmedabad, Delhi, Dehradun, Hyderabad, and Indore, among others, MoneyTap is looking to expand its footprint to 200 cities.
The new capital for the company has come after more than two years. Previously, it had raised $9 million in its Series A led by Sequoia India in June of 2017.
Focussed on individual lending, MoneyTap was launched in September 2015 as an app-based consumer credit line by entrepreneurs Anuj Kacker, Bala Parthasarathy, the co-founder of Prime Ventures and Kunal Varma.
According to the company’s website, it offers various types of personal loans including marriage, medical, education, travel, home renovation, debt consolidation loans and others, which are easily accessible from anywhere and at any time and can be repaid in flexible equated monthly instalments or EMIs.
The startup is different from other lending companies as it offers its customers the choice to decide their own EMI plans with flexible payback periods ranging from 2 months to 3 years and with interest rates which can be as low as 1.25% per month.
At MoneyTap, a consumer can choose to borrow as little as Rs 3,000 or as much as Rs 5 lakh or up to their maximum eligibility limit.
MoneyTap competes with Capital Float, Paysense, FlexiLoans and Lendingkart and others in the lending startup ecosystem.