Fintech firm LoanTap raises $3 million from HNIs in Series-A funding round
One of its kind fintech with an in house NBFC platform LoanTap has announced securing funds worth $3 million (nearly Rs 19.95 crore) in a Series-A investment round. LoanTap will be leveraging the raised capital to expand its operations in National Capital Region (NCR), Mumbai Metropolitan Region (MMR), Pune and Bangalore.
Nearly 85% of the funding, which was led by Mumbai-based high networth individuals (HNIs), will be used for onward lending by the platform, while a part of the remaining capital will also be used to augment its technology and distribution frameworks.
"Our platform was established for the millennials, keeping in mind the otherwise risk-averse low-salaried loan segment. The Series-A investment is a strong validation of LoanTap`s robust business model and experienced promoters having a proven track record in technology, retail-asset underwriting and business scale-up. Instead of burning the entire capital on technology upgrades and distribution," said LoanTap chief executive officer Satyam.
"We will chiefly utilise the money for creating end-user specific products and delivering it directly to retail customers. The funding will also enable us to grow in the loan market owing to our simple processes and product relevance," he added.
Headquartered in Mumbai with the backoffice in Pune, LoanTap follows an agency-based collection model catering to the low-delinquency salaried segment with a job experience of merely two to five years in its first phase.
The online platform also allows professionals to make flexible single and bulk payments that are convenient and cost-effective.Currently, emphasising exclusively on the upwardly-mobile salaried professionals, LoanTap envisions penetrating deeper into the salaried segment.
It eventually aims to tap into the micro, small and medium-sized enterprise (MSME) sector with an average loan size of Rs 6 lakh by expanding to the top 10 cities of the country and reaching a book size of Rs 750 crore in the next three years. LoanTap is a fintech platform delivering a bouquet of loan products to salaried professionals.
From the regular equated monthly installment (EMI) based Loans, to EMI free loans to personal line of credit loantapcaters to all the requirements of a budding salaried professional. Unlike most Fintech Companies it is not an aggregator platform and directly dispenses loans through its in-house NBFC.
It uses technology to deliver smart and innovative products for millennials. Borrowers can choose custom made loan products from an array of offerings like overdraft facility, credit card takeover loans, rental.