LoanTap, a digital lending platform has raised ₹43 crores ($6.25 million) in an equity funding round led by the venture capital firm Shunwei Capital, based in Beijing. Other firms and investors that participated in this funding round were Mumbai based Tuscan Ventures and Ashish Goenka, owner of Suashish Diamonds. India Quotient and Kae Capital were among the already existing investors who were also part of this funding round, as reported in The Economic Times.
LoanTap, a digital lending platform for salaried professionals was launched by Satyam Kumar and Vikas Kumar in 2016. It is registered with the RBI as an NBFC, providing transparent products and pricing. It is committed to providing flexible loan products using technology to minimise costs involved.
It provides a variety of loan products to choose from for the customers, such as EMI free loans, personal overdrafts, advance salary, holiday loans, wedding loans, premium bike loans, rental deposits, credit card takeover etc.
“Our plan is to leverage this funding by four to five times to source around ₹200 crores ($29.1 million) from lending institutions, which will be used to lend out to more consumers,” said Satyam Kumar.
LoanTap has been operational for about 17 months and already provided its services to over 5000 customers by lending ₹100 crores overall. Majority of its customers are from Bangalore, accounting for nearly 35% of its total customer base.
“We lend up to Rs 10 lakh with an average of Rs 3 lakh for an average period of around 48 months. We have managed to retain the nonperforming asset level to less than 0.35% as of our March balance sheet,” said Kumar.
Digital lending is a growing industry in India and it is expected to be a $2.4 billion industry by 2020. There are other startups in the digital lending space that can provide competition to LoanTap, like LendingKart, FlexiLoans, KredX, Capital Float, MoneyTap, etc. Recently, Flipkart has also applied for NBFC license and looking to get into digital lending and it will be looking for partners. LoanTap can take this opportunity and lead the way for Flipkart in a mutually beneficial partnership.