MoneyTap, a consumer-lending company, said on Tuesday that it has secured funding
of Rs 500 crore in equity and debt, in a development that it expects will help the firm create a loan book of Rs 5,000 crore over the next 12-18 months. The equity Series-B round was led by global funds such as Aquiline Technology Growth (ATG), RTP Global and Sequoia India, along with Korea and Japan-based investors. Existing investors, Prime Venture Partners and MegaDelta, have also participated in this round. Debt capital has been secured from leading players such as Vivriti Capital and Credit Saison in the form of co-lending and credit lines.
The company will use the funds to accelerate its growth trajectory, invest further in technology, data science, and launch its NBFC (non-banking financial company) operations. It also plans to significantly expand its geographical footprint from 60 to 200 Indian cities, bringing its unique credit line value proposition to the masses.
“Our mission has been to provide credit to the growing middle-income groups, in the most flexible, convenient and affordable manner, with money being available to the customer on ‘tap’,” said Anuj Kacker, co-founder of MoneyTap. “We will use this funding
to scale our business, innovate with data-backed lending models and continue to hire aggressively. We will also use the funds to expand our credit offerings via our own NBFC.”
MoneyTap was commercially launched in September 2016 as India’s first app-based consumer credit line by serial entrepreneurs Bala Parthasarathy, Anuj Kacker and Kunal Varma. The company said it has been on a phenomenal 4X growth trajectory in the last 12 months, and in over 3 years of operations has created a loan book of over Rs 1,000 crore and achieved a disbursal run rate of Rs 2,500 crore a year. MoneyTap also secured an NBFC license from the RBI in 2019.
“The ever-increasing digitization of India’s economy and financial services industry has created compelling opportunities, particularly for India’s emerging fintech companies,” said Max Chee, Head of Aquiline Technology Growth. “MoneyTap’s unique line of credit products address the significant need for consumer credit that is seamlessly distributed to end-users.”