Fintech platform LoanTap on Monday said it has secured $3 million in a first strategic round of funding (Series A) from high net worth individuals (HNIs) Abhishek Pandey and Jaysukh Sapra.
LoanTap said nearly 85 per cent 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.
Further, LoanTap will be leveraging the raised capital to expand its operations in NCR, Mumbai Metropolitan Region, Pune and Bangalore, it said.
LoanTap has an inhouse NBFC platform delivering flexible EMI-free loan and overdraft products to salaried professionals.
Headquartered in Mumbai with the back office in Pune, LoanTap follows an agency-based collection model catering to the low-delinquency salaried segment with a job experience of 2-5 years in its first phase.
“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,” Commenting on the capital raised, Satyam Kumar, CEO of LoanTap, said.
“The funding will also enable us to grow in the loan market owing to our simple processes and product relevance,” he added.
The online platform also allows professionals to make flexible single and bulk payments.
Currently emphasising 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 6 Lakhs by expanding to the top 10 cities of the country and reaching a book size of Rs 750 crores in the next 3 years, it said.
The platform is not an aggregator and dispenses loans through its inhouse NBFC.
Presently, it is operational in Mumbai and Pune and was incorporated in the beginning of 2016 by ex-banking professional Satyam Kumar and former tech professional Vikas Kumar.