LoanTap a Mumbai based Fintech platform as raised $3 million in its Series A round of funding from HNIs- High Net Individuals, Abhishek Pandey and Jaysukh Sapra.
Around 75% of the funds will be used towards lending, and the remaining for distribution framework and to enhance its technology. Funds will be also used to expand its operations Mumbai, NCR, Bangalore and Pune. It has an inhouse NBFC platform which delivers flixible EMI-free loan and overdraft products to salaried professionals.
It was founded in 2016 by Satyam Kumar and Vikas Kumar. It allows professionals to make single and bulk payments. It follows an agency based collection model catering to low- delinquency salaried segment with 2-5 years of job experience in its first phase.
Currently it is operational in Mumbai and Pune. Borrowers will be provided with the option to choose custom made loan products including security deposit loans, consumer durable loans, credit card takeover loans, advance salary loans, rental and overdraft facility.
Satyam Kumar, CEO of LoanTap, said,
“Our platform was established for the millennials, keeping in mind the otherwise risk-averse low-salaried loan segment. 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.”
It aims to tap into the MSME sector with an average loan size of Rs. 6 lakhs. For this it plans to expand to top 10 cities of the country and to reach the book size of Rs 750 crore in the next 3 years.