[Funding alert] Consumer lending startup MoneyTap secures Rs 500 Cr in new equity and debt round

Consumer lending startup MoneyTap on Monday announced that it had secured funding of Rs 500 crore as a part of an equity and debt round.   

The Series B equity round is led by global funds, including Aquiline Technology Growth (ATG), RTP Global and Sequoia India, along with some Korea and Japan-based investors. Existing investors Prime Venture Partners and MegaDelta also participated in this round.

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The debt capital has been secured from financial services player Vivriti Capital and Japan-based Credit Saison among others in the form of co-lending and credit lines. 

Prior to this, the company had raised a total of $12.3 million in equity funding in June 2017.   

The company said that it would use the funds to accelerate its growth trajectory, invest further in technology and data science, and launch its NBFC operations. MoneyTap also plans to significantly expand its geographical footprint from 60 to 200 Indian cities, bringing its unique credit line value proposition to the masses.

Speaking on the fund raise, Anuj Kacker, Co-founder of MoneyTap, said,

“This latest development reaffirms MoneyTap’s leadership position in the fintech sector and the trust it has gained over the years from customers, capital partners, and investors. We will use this funding to scale our business, innovate with data-backed lending models, and continue to hire aggressively. We will also use the funds to expand our credit offerings via our own NBFC.”

Launched in September 2016 by serial entrepreneurs Bala Parthasarathy, Anuj Kacker, and Kunal Varma, MoneyTap is an app-based consumer credit line that gives customers access to credit on tap.

While, Abheek Anand, Managing Director, Sequoia Capital (India) Singapore said, “We are thrilled to see MoneyTap’s recent performance and their laser focus on solving a clear customer pain point. They have successfully balanced growth, profitability, and book quality – three of the most important indicators of an enduring fintech business.”

The lending platform claims to witness a four-fold growth in the last 12 months. The company also said it had created a loan book of more than Rs 1,000 crore, since starting operations, and achieved a disbursal run rate of Rs 2,500 crore a year.

Kirill Kozhevnikov, Partner at RTP Global, said,  “MoneyTap is building capabilities to tap into the present and future needs of the customers faster than other fintech startups. The co-founders have a clear vision to transform the consumer lending industry, and serve the needs of this huge credit market. We are happy to be part of this journey.”

 Commenting on their current investment, Max Chee, Head of Aquiline Technology Growth, said, “The ever-increasing digitisation of India’s economy and financial services industry has created compelling opportunities, particularly for India’s emerging fintech companies."

"MoneyTap’s unique line of credit products addresses the significant need for consumer credit that is seamlessly distributed to end users. We believe they are the leaders in the industry in terms of volume growth and managing risk at scale. We look forward to working with them to expand their mission and vision.”

Post this funding, MoneyTap was looking to build a loan book of Rs 5,000 crore over the next 12-18 months, the company said. The startup also secured an NBFC licence from the RBI in 2019.

(Edited by Teja Lele Desai)

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