Financial services startup LoanTap Financial Technologies on Friday announced that it has closed its second funding round at $4 million.
The equity infusion was led by early-stage investor Kae Capital with participation from its existing investors including India Quotient and HNI Investors.
“Post funding Loantap aims to bolster collection features in its software, besides reaching out to Tier 2 & Tier 3 (major capital cities and business hubs) of India,” the company said in a release.
Founded in May 2016 by Satyam Kumar and Vikas Kumar, the company received its NBFC licence in July 2016.
In August last year, the Mumbai-based online non-banking financial company (NBFC) raised $3 million from high-net-worth individuals Abhishek Pandey and Jaysukh Sapra. The company had said, at the time, that it plans to use 85 per cent of the funds to extend loans and the rest to strengthen its technology and marketing.
LoanTap has an in-house integrated loan processing platform to disburse loans in a short amount of time. The company claims that its platform has received over 47,000 loan applications since its launch less than a year ago.
It says that 38 per cent of LoanTap’s credit portfolio comprises the revolutionary 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.
Financial services, especially fintech, has emerged as one of the most attractive sectors for investors. Recently, point-of-sale venture Mswipe Technologies raised a $31 million round of funding led by UCRNT Fund. Also, Gurgaon-based micro finance institution SV Creditline Ltd has raised Rs 20 crore ($3.1 million) in debt from Capital First.