LoanTap Financial Technologies today said it has raised USD 4 million (about Rs 26 crore) in second round of funding, which will be invested in software and expand its footprint in tier 2 and 3 cities.
“LoanTap Financial Technologies, an online personal loan company with in-house NBFC, has announced closing of its second round funding at USD 4 million,” the company said in a statement.
Post funding, LoanTap aims to bolster collection features in its software, besides reaching out to Tier 2 and Tier 3, major capital cities and business hubs.
The fund raising round comprises of a mix of equity and debt instruments from Kae Capital, India Quotient, IFMR and MAS Financial Services Ltd.
“Equity infusion to the platform was led by Kae Capital with participation from its existing investors, including India Quotient and HNI investors. On the other hand, debt has been raised from leading NBFCs such as IFMR and MAS Financial Services Ltd,” the statement said.
At present, the platform is receiving 5,400 to 6,000 loan enquiries every month resulting in more than 600 files make initial cut and travel through robust credit process.
“Customers are choosing products that deliver flexibility, seamless experience and lifetime cost advantage over perceived financial benefits. We have been able to demonstrate that for discerning millennials, product experience far outweighs upfront pricing modules adopted by traditional lenders in India,” LoanTap CEO Satyam Kumar said.
The platform has received a sum of more than 47 thousand loan applications since its launch less than a year ago.
Around 38 per cent of LoanTaps credit portfolio comprises the revolutionary EMI-free product, which requires an applicant to only serve monthly interest on the loan outstanding, while he can schedule principal payments, based on his projected incentive or bonus credits, the statement said.