Fintech firm LoanTap raises $3 mn from HNIs

Mumbai, Aug 29 (PTI) Fintech platform LoanTap today saidit has secured USD 3 million in a first strategic round offunding (Series A) from high net worth individuals (HNIs)Abhishek Pandey and Jaysukh Sapra. LoanTap said nearly 85 per cent of the funding, whichwas led by Mumbai-based HNIs, will be used for onward lendingby the platform, while a part of the remaining capital willalso be used to augment its technology and distributionframeworks. Further, LoanTap will be leveraging the raised capitalto expand its operations in NCR, Mumbai Metropolitan Region,Pune and Bangalore, it said. LoanTap has an inhouse NBFC platform deliveringflexible EMI-free loan and overdraft products to salariedprofessionals. Headquartered in Mumbai with the back office in Pune,LoanTap follows an agency-based collection model catering tothe low-delinquency salaried segment with a job experience of2-5 years in its first phase. "Our platform was established for the millennials,keeping in mind the otherwise risk-averse low-salaried loansegment. Instead of burning the entire capital on technologyupgrades and distribution, we will chiefly utilise the moneyfor creating end-user specific products and delivering itdirectly to retail customers," Commenting on the capitalraised, Satyam Kumar, CEO of LoanTap, said. "The funding will also enable us to grow in the loanmarket owing to our simple processes and product relevance,"he added. The online platform also allows professionals to makeflexible single and bulk payments. Currently emphasising exclusively on the upwardly-mobilesalaried professionals, LoanTap envisions penetrating deeperinto the salaried segment. It eventually aims to tap into the MSME sector with anaverage loan size of Rs 6 Lakhs by expanding to the top 10cities of the country and reaching a book size of Rs 750crores in the next 3 years, it said. The platform is not an aggregator and dispenses loansthrough its inhouse NBFC. Presently, it is operational in Mumbai and Pune and wasincorporated in the beginning of 2016 by ex-bankingprofessional Satyam Kumar and former tech professional VikasKumar. PTI DSK DKMKJRYS