Loantap raises $6.2 Mn led by July Ventures

Pune-based digital lender Loantap has raised $6.2 million in a new equity funding round led by July Ventures. Existing backers including 3one4 Capital, Avaana Capital, Kae Capital, and the Swapurna Family Office also participated.

Additionally, the company has raised $2.3 million in venture debt as part of the round, taking its total funding to approximately $26 million.

In March 2023,  LoanTap had acquired Unofin, a healthcare-focused fintech startup, to expand its presence in the healthcare finance space.  In the same year, Loantap raised a debt round of Rs 24 crore ($2.9 million) from global investment institution Lighthouse Canton.

Founded in 2016 by Satyam Kumar and Vikas Kumar, Loantap has transitioned its business model from consumer lending to serving small merchants, such as pharmacies and stationery shops. The company has significantly scaled down its unsecured consumer loan portfolio and now focuses on sourcing such loans for NBFC partners instead of lending via its own balance sheet.

As of now, Loantap claims to have an annual disbursal run rate of Rs 600 crore across 26 cities, serving nearly 50,000 retail customers. It aims to grow annual disbursements to Rs 900 crore by FY26. The company targets merchants with turnovers under Rs 20 lakh and distributes credit lines primarily used for purchasing inventory from distributors.

Loantap has also built a middleware tech platform that helps banks and NBFCs originate and manage loans to small businesses. This software is currently used by three financial institutions.

The company closed FY24 with Rs 67.5 crore in revenue and a net loss of Rs 12.7 crore. Following the demise of co-founder and CTO Vikas Kumar in April 2024, the company is preparing to elevate a senior executive to co-founder and appoint a new CTO from within the existing team.