Loantap secures $6.2 million in fresh funding from July Ventures and existing investors
With this, the total capital raised by the company stands at around $45 million. The fundraise comes at a time when the broader digital lending sector is facing headwinds due to regulatory tightening and a cautious stance from banks and large non-banking finance companies.
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Pune-based digital lending platform Loantap has raised $6.2 million in fresh equity funding led by July Ventures . Existing investors 3one4 Capital, Avaana Capital, Kae Capital and the Swapurna Family Office also participated in the round.With this, the total capital raised by the company stands at around $45 million.The fundraise comes at a time when the broader digital lending sector is facing headwinds due to regulatory tightening and a cautious stance from banks and large non-banking finance companies.The company has pivoted from consumer lending to serving small businesses, such as pharmacies and neighbourhood stationery stores. Over the past two years, it has significantly scaled down its unsecured consumer lending book. At its peak in FY23, the company managed a portfolio of Rs 340 crore, which has since been halved.'We have stopped doing balance-sheet based consumer loans. We are only sourcing consumer loans for our NBFC partners and are primarily focused on small merchant loans,' said Satyam Kumar, cofounder of Loantap. According to Kumar, the company's consumer loan book, currently managed by partner lenders, stands at approximately Rs 350 crore.Loantap was founded in 2016 by Kumar, a former senior executive at IndusInd Bank , and Vikas Kumar, who previously cofounded SME Networks.Vikas Kumar, who was also Loantap's chief technology officer, reportedly passed away in an accident in Bengaluru on April 30. The company is now looking to elevate a senior executive to the role of cofounder and appoint a new CTO from within the existing technology team.Lata is currently focused on offering credit lines to small retailers, most of whom have annual turnovers below Rs 20 lakh. These credit lines are typically used to pay distributors. The company uses short-form video content and social media outreach to acquire these merchants, and now operates across 26 cities.'We are currently disbursing around Rs 600 crore in loans annually, with about 50,000 active retail customers. Our target is to reach Rs 900 crore in disbursements by FY26,' Kumar added.Beyond lending, the company has developed a proprietary software stack to help financial institutions originate and service small retailers. This middleware solution is already being used by three partner banks.Loantap closed FY24 with revenue of Rs 67.5 crore and a net loss of Rs 12.7 crore.
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