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One of its kind fintech with an in house NBFC platform LoanTap has announced securing funds worth USD three million in a Series A investment round.
LoanTap will be leveraging the raised capital to expand its operations in NCR, Mumbai Metropolitan Region, Pune and Bangalore. Nearly 85 percent of the funding, which was led by Mumbai-based HNIs, will be used for onward lending by the platform, while a part of the remaining capital will also be used to augment its technology and distribution frameworks.
"Our platform was established for the millennials, keeping in mind the otherwise risk-
averse low-salaried loan segment. The Series A investment is a strong validation of LoanTap's robust business model and experienced promoters having a proven track record in technology, retail-asset underwriting and business scale-up. Instead of burning the entire capital on technology upgrades and distribution," said CEO LoanTap, Satyam.
"We will chiefly utilize the money for creating end-user specific products and delivering it directly to retail customers. The funding will also enable us to grow in the loan market owing to our simple processes and product relevance," he added.
Headquartered in Mumbai with the backoffice in Pune, LoanTap follows an agency-based collection model catering to the low-delinquency salaried segment with a job experience of merely two to five years in its first phase. The online platform also allows professionals to make flexible single and bulk payments that are convenient and cost-effective.
Currently emphasizing exclusively on the upwardly-mobile salaried professionals, LoanTap envisions penetrating deeper into the salaried segment. It eventually aims to tap into the MSME sector with an average loan size of Rs. six lakhs by expanding to the top 10 cities of the country and reaching a book size of Rs. 750 crore in the next three years.
LoanTap is a fintech platform delivering a bouquet of loan products to salaried professionals. from the regular EMI based Loans, to EMI free loans to personal line of credit loantapcaters to all the requirements of a budding salaried professional.
Unlike most FinTech Companies it is not an aggregator platform and directly dispenses Loans through its in-house NBFC. It uses technology to deliver smart and innovative products for millennials. Borrowers can choose custom made loan products from an array of offerings like overdraft facility, credit card takeover loans, rental.
The company eventually aims at tapping the MSME sector with an average loan size of Rs. six lakh by expanding in the top 10 cities of the country and reaching a book size of Rs. 750 crore in the next three years.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)