[Funding alert] Digital lending startup LoanTap raises $12M in Series B led by Avaana Capital
Pune-based digital lending startup LoanTap has raised $12 million in Series B funding led by Avaana Capital.
The current round also saw participation from existing investors including 3one4 Capital, India Quotient, Shunwei Capital, and Kae Capital.
Anjali Bansal, Founder, Avaana Capital, said,
“LoanTap is using the latest technology, and has developed a robust underwriting process to build a high-quality portfolio. We believe that LoanTap is well positioned to emerge as a lender of choice for millennials and middle India. Keeping customer cash flow needs at the centre of product design provides more flexibility to the consumer while reducing risk.”
Avaana invests in businesses that provide financial inclusion, access to goods and services, and market linkages to middle India.
Founded in May 2016 by Satyam Kumar and Vikas Kumar, LoanTap offers customised personal loans such as EMI-free Loan, rental deposit loan, holiday loan, and other differentiated offerings to white collared salaried professionals. The startup claims that it is one of the few fintech startups that became profitable within two years of its operations.
Satyam Kumar, CEO and Co-founder, LoanTap, said,
“LoanTap has created a strong technology backbone, which offers a superior customer experience. We tripled our loan book last year and the current round of funding will further fuel this growth.”
With this fund raise, the startup has raised a total of $25 million till date. It raised $8 million in January 2019, a round led by 3one4 Capital. In 2018, the firm secured $6.25 million from Shunwei Capital, with co-participation from Tuscan Ventures and Ashish Goenka from Suashish Diamonds.
LoanTap competes with the likes of LendingKart, Rubique, CapitalFloat, Faircent, FlexiLoans, EarlySalary and Money Tap among others.
In September, LendingKart Technologies' Co-founder and Chief Operating Officer (COO) Mukul Sachan has quit the startup to explore his interests in investment management. However, he will continue to be an active mentor and a consultant for Lendingkart, dividing his time equally.
(Edited by Megha Reddy)