LoanTap has raised $8 million through a combination of Equity and Debt instruments, said the company. 3one4 Capital led 5th round of funding, which saw participation from all existing investors; Shunwei Capital, Kae Capital, India Quotient, Tuscan Venture and angel investor Ashish Goenka.
“We have always worked hard to on-board right partners. 3one4 Capital brings in a unique blend of expertise in core tech investing and a deep sectoral understanding along with an immense network that includes its marquee LPs. We are looking forward to partnering with Pranav, Siddarth, and the team at 3one4 Capital,” said LoanTap CEO Satyam Kumar.
The fintech startup said that the present liquidity squeeze was temporary in nature and that the industry had weathered many such situations in past, like in 2013 and 2008. LoanTap offers EMI Free Loans, Personal Overdraft, Rental Deposit Loans and Credit Card Takeover Loans that focuses on monthly cash outflow of salaried professionals.
The startup claimed that its customised loans match speed and instant consumption patterns of the tech-savvy millennial. Latest technology is utilized for key processing steps like loan application, credit worthiness assessment and disbursal mechanism that helps customer save time in getting faster access to credit.
The company said that it has become profitable within first five quarters of its operation and its loan book is growing at 12% on monthly basis.
“By giving their customers more choice, better information, reduced complexity, and allowing for personalization, the LoanTap team has demonstrated a true understanding of the elements that go into building an institutional presence in their space. They have utilized their deep domain expertise to build a platform that reduces uncertainties, eliminates friction, and integrates all the necessary components to diligently facilitate the best possible offering for their customers,” claimed Pranav Pai, Founding Partner of 3one4 Capital.
“As a result, their customers are already seeing a solution that very clearly works on their behalf to ensure the optimal experience that lowers costs, increases transparency, and extends additional flexibility. We are looking forward to partnering with the LoanTap team to help build a best-in-class institution that delivers consistency at scale,” Pai said.