Mumbai-based LoanTap has raised $3 million in a Series-A round from Mumbai-based HNIs Dr Abhishek Pandey and Mr Jaysukh Sapra.
The startup, which is currently present in Mumbai and Pune, will use the raised funds to expand its operations in NCR, the Mumbai Metropolitan Region, Pune, and Bengaluru. The majority of the funds 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.
The platform, which was founded in the first half of 2016 by ex-banking professional Satyam Kumar and former tech professional Vikas Kumar, delivers loan products to salaried professionals. From the regular EMI-based loans to EMI-free loans to personal line of credit, LoanTap caters to all the requirements of a budding salaried professional. It is not an aggregator platform; it directly dispenses loans through its in-house NBFC platform.
Borrowers can choose custom-made loan products from an array of offerings like overdraft facility, credit card takeover loans, rental, security deposit loans, advance salary loans, and consumer durable loans.
This online platform has first forayed into salaried segment anf for professionals with 2-5 years of experience. The company claims to stand out for its speedy disbursement of loans with an average amount of Rs 4 lakh for 15 days to five years. It also makes a pitch for flexible single and bulk payments that are convenient and cost-effective.
Furthermore, it aims at tapping the MSME sector with an average loan size of Rs 6 lakh by expanding in the top 10 cities of the country and reaching a book size of Rs750 crore in the next three years.
Recently, Deal4loans, which also operates on a similar model, had raised $15 million. Further, the number of deals in the first half of 2016 has already crossed the total number of fintech startup deals of 2015. This makes it amply clear that fintech is a bustling segment of 2016.
According to YourStory Research, close to 16 deals amounting to $122 million were made in the lending space last year. This year, more than 10 deals amounting to $741 million have already been made. Within lending there are two broad categories — SME lending and personal finance.
Also, according to NASSCOM, the total fintech software and services market in India is estimated to be worth $8 billion and pegged to grow 1.7X by 2020, while the worldwide fintech software market is estimated to be valued at $32 billion in 2015 and estimated to reach to $45 billion by 2020.