Lending platform LoanTap raises US$3M in Series A round led by Mumbai-based HNIs
Funds to be used for onward lending and enhancing its technology and distribution solutions
LoanTap, an India-based lending platform for salaried professionals, has announced that it raised US$3 million in a Series A investment round led by Mumbai-based HNIs (high net worth individual), Dr Abhishek Pandey and Jaysukh Sapra.
LoanTap will be leveraging the raised capital to expand its operations in NCR, Mumbai Metropolitan Region, Pune and Bangalore.
Nearly 85 per cent of the funding 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.
Currently emphasising exclusively on the upwardly-mobile salaried professionals, LoanTap envisions penetrating deeper into the salaried segment. It eventually aims to tap into the Ministry of Micro, Small and Medium Enterprises (MSME) sector with an average loan size of US$10k by expanding to the top 10 cities of the country and reaching a book size of US$112 million in the next three years.
“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,” said Satyam Kumar, CEO of LoanTap, in a press statement.
“Instead of burning the entire capital on technology upgrades and distribution, we will chiefly utilise 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.
Founded in 2016, LoanTap is headquartered in Mumbai with an office in Pune.
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