Fintech platform LoanTap has said that it has secured $3 million in a first strategic round of funding (Series A) from high net worth individuals Abhishek Pandey and Jaysukh Sapra, according to a report in the Hindu Business Line.
LoanTap said as much as 85% of the funding that was led by Mumbai-based HNIs will be employed for onward lending by the platform. The remaining capital and resources will be tapped into technology and distribution frameworks.
LoanTap will also be leveraging the raised capital to expand its operations in NCR, Mumbai Metropolitan Region, Pune and Bangalore, the company said. LoanTap also boasts of an in-house NBFC platform which delivers flexible EMI-free loan and overdraft products to salaried professionals.
LoanTap which has its headquarters in Mumbai with the back office in Pune, the company adheres to an agency-based collection model which caters to the low-delinquency salaried segment and with a job experience of 2-5 years in its first phase.
“Our platform was established for the millennials, keeping in mind the otherwise risk-averse low-salaried loan segment. Instead of burning the entire capital on technology upgrades and distribution, we will chiefly use the the money for creating end-user specific products and delivering it directly to retail customers,” said Satyam Kumar, CEO, LoanTap.
“The funding will also enable us to grow in the loan market owing to our simple processes and product relevance,” he added.