Pune-based online lending startup LoanTap on Thursday announced that it had closed its third round of equity funding of $6.25 million from Shunwei Capital, with co-participation from Tuscan Ventures and Ashish Goenka from Suashish Diamonds. Existing investors India Quotient and Kae Capital also invested in this round.
According to the company, this round takes the cumulative funding raised by LoanTap to over $20 million in debt and equity, while the company plans to leverage an additional $30 million in debt this year.
Earlier, in August of 2016, the company had raised a Series-A round of $3 million from HNIs and later raised $4 million in Series B in June 2017.
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. Further, the platform has various loan products ranging from EMI-based loans to EMI-free loans to personal line of credit. With an in-house NBFC platform that disburses loan directly.
Speaking on the fundraise, Satyam Kumar, Executive Director of LoanTap, added,
“We have been breaking new ground in the cluttered salaried segment by designing products which match the speed and spend patterns of the tech-savvy, instant consumption, modern-day employee. This is the reason why our EMI-free loans and salary overdraft are well received in the market. Unlike other fintech startups we are focused on a profitable loan book. Even with experimentation, we have been able to keep our cash burn to a minimum and were able to become profitable in the second year of business itself.”
He further added they are also rolling out three DIY products in the personal loan space and two products in the consumer durable space this year.
Tuck Lye Koh of Shunwei Capital added,
“We are quite interested in the personal loan and consumption space in India and find it quite an under-penetrated market. LoanTap, with its strict credit quality algorithm, is well placed to capture this market.”
The lending platform claims that it has increased its loan book by 6.7x in the last 12 months. In January last year, the company said that it was projecting Rs 28 crore in loan disbursement by March 2017.
The company then said that the average loan size is currently at Rs 2.48 lakh disbursed across Bengaluru, Delhi, Pune, and Mumbai.