Loantap raises $8M funding led by 3one4 Capital

Digital lending platform Loantap has raised $8 million (Rs 57 crore) through a combination of debt and equity in its fifth round of fundraising led by Bengaluru-based early stage venture capital fund 3one4 Capital.

The round also saw participation by existing investors such as Shunwei Capital, Kae Capital, India Quotient, Tuscan Venture and angel investor Ashish Goenka.

This round comes close on the heels of an equity fundraise that happened in July last year when Shunwei Capital came in. The company had raised $6.25 million at that time.

The Pune-based nonbanking finance company (NBFC) extends consumer loans, personal overdrafts, and rental deposit loans.

“The last round that we had raised in 2018 has been mostly used for onward lending,” said Loantap CEO Satyam Kumar. “Now with this equity fund infusion, I will be able to leverage more and plan to raise Rs 90 crore of debt mainly to help in creating a bigger loan book.”

Kumar said that by March, Loantap plans a loan book of Rs 250 crore, up from Rs 160 crore and 11,500 borrowers now. “We have already hit a monthly disbursal rate of Rs 25 crore, up from Rs 7 crore same time last year,” he said.

Loantap wants to lend more aggressively to the salaried class. “My customers have a minimum salary of Rs 5.5 lakh per annum and can borrow up to Rs 10 lakh from the platform,” Kumar said.