Online lending platform LoanTap raises $4M in Series B funding
With new funds in its kitty, fintech startup LoanTap plans to bolster software and expand its footprint to tier-2 and tier-3 cities.
The funding, a mix of debt and equity, was led by Kae Capital, India Quotient, IFMR, and MAS Financial Services along with angel investors. The startup raised equity mainly from Kae Capital, along with participation from its existing investors including India Quotient and HNI whereas debt was infused by leading NBFCs such as IFMR and MAS Financial Services.
Founded by ex-banking professional Satyam Kumar and former tech professional Vikas Kumar in 2016, LoanTap offers quick and cost-effective loan solutions to salaried professionals. The startup offers various loan products ranging from EMI-based loans to EMI-free loans to personal line of credit. With an in-house NBFC platform, which disburses loan directly, LoanTap has made availing loans, a simple and hassle free process for borrowers.
As per the company report, the fintech firm, which currently has its presence in major metropolitan cities, plans to expand its reach to popular tier-2 and tier-3 capital cities and business hubs of the country. It also aims to utilise the funds to bolster collection features in its software. Presently, Loantap’s software comprises of a complex set of underwriting on each and every application, which involves IP address, social media, and identity searches on individual profiles built over traditional underwriting. The platform has also witnessed lower credit risk trends in its portfolio due to enhanced features of credit appraisal.
During the special occasion, Satyam Kumar, CEO, LoanTap, said,
We have been able to demonstrate that for discerning millennials, product experience far outweighs upfront pricing modules adopted by traditional lenders in India. Customers are choosing products that deliver flexibility, seamless experience and lifetime cost advantage over perceived financial benefit.
Borrowers can choose custom-made loan products from an array of offerings like overdraft facility, credit card takeover loans, rental, security deposit loans, advance salary loans, and consumer durable loans. Owing to its innovative product portfolio, the company has witnessed a steep rise in loans this year. The company, known for its speedy disbursements, has delivered many loans in a span of just 36 hours.
The platform receives nearly 6,000 loan inquiries every month and around 10 percent of the total, make it through the robust credit process. Thirty-eight percent of LoanTap’s credit portfolio includes the revolutionary EMI-free product, which requires an applicant to only serve monthly interest on the outstanding loan, with the freedom to schedule principal payments.
In August 2016, LoanTap had received its Series A of $3 million from Mumbai-based HNIs Abhishek Pandey and Jaysukh Sapra to fund its operations.