Pune-based digital lending startup LoanTap has raised $8 million funding led by Bengaluru-based Venture Capital Fund 3one4 Capital.
This is the fifth round of funding raised by LoanTap, which is a combination of debt and equity. Existing investors Shunwei Capital, Kae Capital, India Quotient, Tuscan Venture and angel investor Ashish Goenka of Suashish Diamonds also participated in the round, according to media reports.
With the freshly raised round, LoanTap will be able to leverage more, and the platform plans to raise Rs 90 crore of debt to create a bigger loan book, said Satyam Kumar, CEO, LoanTap.
The company had closed its third-round of equity funding in July 2018, after raising $6.25 million from Shunwei Capital, along with participation from Tuscan Ventures and Ashish Goenka.
Launched by ex-banking professional Satyam Kumar and former tech-professional Vikas Kumar in May 2016, online lending platform LoanTap delivers flexible loan products to salaried individuals.
Designed to specifically cater to the needs of salaried milennials, LoanTap provides EMI-free loans, personal overdraft facilities and rental deposits.
In a previous conversation with YourStory, Satyam Kumar had said:
“We have been breaking new ground in cluttered salaried segment by designing products which match the speed and spend patterns of the tech-savvy, instant consumption, modern-day employee. This is the reason why our EMI-free loans and salary overdraft are well received in the market.”
He further added: “Unlike other fintech startups, we are focused on a profitable loan book. Even with experimentation, we have been able to keep our cash burn to a minimum and were able to become profitable in the second year of business itself.”
The Pune-based non-banking finance company (NBFC) also has plans to roll-out three DIY products in the personal loan space. In July 2018, LoanTap had claimed to have increased its loan book by 6.7x, with an average loan size of Rs 2.48 lakh being disbursed across Bengaluru, Delhi, Pune and Mumbai.