Mumbai headquartered fintech startup Loantap has secured $6.25 Mn (INR 43 Cr) in fresh fundraising round. The equity funding round was spearheaded by China based VC firm Shunwei Capital, while existing investors India Quotient and Kae Capital also infused funds in the round. Private investment company Tuscan Ventures and Ashish Goenka (owner of Suashish Diamonds) also participated in the round.
The startup aims to use the funds to improve its operational efficiencies that will help in securing fresh funds from lending institutions. These funds will be in-turn disbursed to consumers.
Incorporated in 2016, Loantap is among scores of fintech startups that is targeting the untapped market of potential credit borrowers. However, the Mumbai based firm is trying to distinguish from other competitors by virtue of its innovative product portfolio. It offers interesting products like EMI free loans, credit card takeover, advance salary loans, rental deposits, holiday loans etc. Almost all these products are targeted towards millennial borrowers.
Prior to the latest fundraising, Loantap raised nearly $7 Mn in two separate rounds. It raised $3 million in series A round in August 2016, followed by $4 million in Series B in June 2017.
The startup claims that it has so far disbursed 100 Cr to more than 5,000 customers, with majority of its customers hailing from IT city of Bengaluru.
Fintech sector witnessing lot of Buzz
This year probably no other sector has garnered interest from investors than Fintech sector. The sector has even managed to defy the ongoing funding drought that has virtually taken toll on the entire startup ecosystem. While investors’ favorable sentiment has been largely driven by untapped credit market, they seem to have been equally compelled by technological growth. Increasing smartphone & internet penetration and emergence of breakthrough technologies like artificial intelligence and sophisticated algorithm have certainly played a huge role in propelling fintech sector’s growth.
According to experts, India’s fintech sector will touch $2.4 Bn by end of next two years. Lendingkart, FlexiLoans, KredX, Capital Float among others are some of the leading players in the industry.