LoanTap raises Rs 74 Cr to expand MSME supply chain financing
LoanTap operates its supply chain financing arm through LT Credit and claims to have financed over 4.5 lakh invoices worth more than Rs 1,000 crore to more than 50,000 retailers in the last 24 months.
Digital lending platform LoanTap has raised Rs 74 crore in a pre-Series C round to scale up its supply chain financing offerings for small retailers. The round includes Rs 54 crore in equity, led by July Ventures, and Rs 20 crore in venture debt.
Existing investors such as 3one4 Capital, Avaana Capital, Kae Capital, and the Swapurna Family Office also participated in the equity component of the fundraise.
The company is targeting India's distributor-led small retailer ecosystem, with a focus on essential verticals like grocery and pharmacy.
“India’s MSME sector is undergoing a massive transformation, and we plan to use this momentum to double down on invoice financing, an area we see as a powerful enabler for MSME growth across India,” said Satyam Kumar, CEO and co-founder of LoanTap. “BICRI also enables distributors to evaluate and extend business and trade credit to retailers. Together, with these two engines, capital access and credit preparedness we plan to drive the next phase of MSME empowerment.”
LoanTap operates its supply chain financing arm through LT Credit and claims to have financed over 4.5 lakh invoices worth more than Rs 1,000 crore to more than 50,000 retailers in the last 24 months. The firm plans to extend its reach to over two lakh retailers and fund one million invoices within the next year, with an average ticket size of Rs 8,000 to Rs 15,000.
A key component of its offering is BICRI (Business Indicator for Credit Ratings in India), LoanTap’s proprietary credit assessment tool. The platform provides a data-driven view of creditworthiness for small retailers and helps lenders assess risk in the absence of traditional credit histories. BICRI also integrates with B2B e-commerce platforms to help distributors extend credit lines to retailers.
The fundraise comes during a broader slowdown in lending in the past few quarters. Fintech lenders disbursed Rs 25,050 lakh crore in personal loans during Q3 FY25 — down 15% from Rs 29,608 lakh crore in the previous quarter — marking the sharpest sequential decline since the COVID-induced crash in Q1 FY21, per a report by the Fintech Association for Consumer Empowerment (FACE).
After years of rapid post-pandemic expansion, the sector is now seeing a moderation in growth, with FACE noting that “growth rates are normalising.”