Fintech firm LoanTap raises USD four million
New Delhi [India], June 23 (ANI): LoanTap Financial Technologies, an online personal loan company with in-house NBFC announced the closing of its second round funding at USD four million. The round comprises of a mix of equity and debt instruments from Kae Capital, India Quotient, IFMR and MAS Financial Services Ltd.
Equity infusion to the platform was led by Kae Capital, with participation from its existing investors including India Quotient and HNI Investors. On the other hand, debt has been raised from leading NBFCs such as IFMR and MAS Financial Services Ltd.
"We have been able to demonstrate that for discerning millennials, product experience far outweighs upfront pricing modules adopted by traditional lenders in India. Customers are choosing products that deliver flexibility, seamless experience and lifetime cost advantage over perceived financial benefits," said Satyam Kumar, CEO, LoanTap.
"Satyam and Vikas together bring strong expertise in Credit, Sales and Technology. They have demonstrated strong growth and are able to differentiate with their innovative products and processes which make their value proposition very compelling," added Navin Honagudi, Investment Director at Kae Capital.
The platform features leading credit quality and reported zero non-performing assets at the end of FY2017. At present, the platform is receiving 5,400 to 6,000 loan enquiries every month resulting in more than 600 files make initial cut and travel through the credit process.
The platform has received a sum of more than 47, 000 loan applications since its inception. 38 percent of LoanTap's credit portfolio comprises EMI-free product, which requires an applicant to only serve monthly interest on the loan outstanding, while he can schedule principal payments, based on his projected incentive or bonus credits.
Loantap's software carries out a complex set of underwriting on each and every application, which involves IP Address, social media and identity searches on individual profiles built over traditional underwriting. Enhanced features of credit appraisal have lead to lower credit risk trends in its portfolio.
Post funding, Loantap aims to bolster collection features in its software, besides reaching out to Tier II and Tier III cities of India. (ANI)