Fintech firm MoneyTap today said it has raised USD 12.3 million (over Rs 78 crore) from Sequoia India and existing investors, NEA and Prime Venture Partners.
"With this fresh funding, MoneyTap plans to solidify its leadership position by improving credit accessibility for other segments of customers, partnering with six other banks and NBFCs and expanding to 50 cities in India by the end of 2017," MoneyTap said in a statement.
It added that the company is also on target to issue credit lines worth Rs 300 crore by the end of the current fiscal.
The app-based consumer credit line has over three lakh users.
The Indian consumer finance market is estimated to grow at a compounded growth rate of 18 per cent to become a USD 1.2 trillion opportunity by 2020, it said. With close to 70 per cent of the population being underserved by institutional lenders and a poor organised credit presence, there is a huge opportunity, the statement said.
Various data shows that consumer-lending startups like MoneyTap, supported by financial institutions, can serve a huge creditworthy but financially excluded customer base, the statement said.
MoneyTap evaluates the user's eligibility and offers credit between Rs 3,000 and 5 lakh that can be paid off between 2 months to 3 years.
"We deeply believe that the rapidly growing middle income group in India is largely underserved by financial institutions. They are app-savvy and very demanding," MoneyTap co-founder Bala Parthasarathy said.