LoanTap Financial Technologies has secured ₹74 crore in pre-Series C funding, including ₹54 crore in equity led by July Ventures and ₹20 crore in venture debt, according to a company statement. The fintech firm plans to expand its supply chain financing offerings for small retailers.
The funding round saw participation from existing investors 3one4 Capital, Avaana Capital, Kae Capital, and Swapurna Family Office. LoanTap stated it has financed over 4.5 lakh invoices worth ₹1,000 crore to small retailers through its platform in the past two years.
LoanTap CEO Satyam Kumar said: “We plan to use this momentum to double down on invoice financing.” The company aims to reach 2 lakh retailers in the next 12 months, though achieving this would require quadrupling its current reported base of 50,000 retailers.
LoanTap’s proprietary BICRI credit assessment tool analyzes retailer data to determine creditworthiness. The company claims this helps address India’s estimated ₹33.2 lakh crore MSME credit gap, though the press release didn’t provide comparative data against traditional lending models.
A July Ventures spokesperson stated: “LoanTap’s ability to combine retail ecosystem understanding with a data-led credit engine positions them uniquely.” However, the release didn’t disclose valuation terms or how the new funding compares to previous rounds.
The announcement comes as India’s MSME sector sees increased digitalization through government initiatives like UPI and the Account Aggregator framework. LoanTap said it focuses on essential segments like groceries and pharmacies, with average ticket sizes between ₹8,000-15,000.
While the company didn’t share profitability metrics or NPA figures, the inclusion of venture debt in the round suggests a balanced approach to growth financing. The Reserve Bank of India has recently implemented stricter guidelines for digital lenders, though LoanTap’s regulatory compliance status wasn’t addressed in the release.
Industry reports suggest supply chain financing has grown significantly since 2020, with ResearchAndMarkets.com projecting the global market to reach $13.4 billion by 2027. However, LoanTap didn’t disclose its market share relative to competitors like Lendingkart or Indifi.
The funding will reportedly expand LoanTap’s team and technology capabilities. The company said its platform integrates with B2B e-commerce players, allowing distributors to set credit limits for retailers.
