5 days ago
LoanTap Raises INR 74 Cr to Expand MSME Supply Chain Financing
The pre-Series C round was led by July Ventures with support from existing investors, and INR 20 crore was additionally raised through venture debt.
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Fintech lender LoanTap has raised INR 74 crore in a pre-series C funding round to strengthen its supply chain financing operations.
The round includes INR 54 crore in equity funding led by July Ventures, with continued support from existing investors including 3one4 Capital, Avaana Capital, Kae Capital, and the Swapurna Family Office. An additional INR 20 crore was raised through venture debt to accelerate the company's offerings for small retailers.
The newly raised capital will be deployed to expand LoanTap's invoice financing and trade credit solutions across India's MSME sector. These funds will be channeled through its proprietary LTFLoW platform, supporting LoanTap's mission to provide seamless credit access to over 4 lakh merchants via its AfterPay network.
Satyam Kumar, CEO and Co-founder of LoanTap, commented, "India's MSME sector is undergoing a massive transformation, and we plan to use this momentum to double down on invoice financing, an area we see as a powerful enabler for MSME growth across India. Our proprietary BICRI tool enables distributors to assess and extend business credit, creating a dual engine of capital access and credit readiness."
Founded in 2016 by Satyam Kumar and Vikas Kumar, LoanTap has evolved into a full-stack digital lending platform offering a wide array of financial products including personal loans, business loans, gold loans, home loans, and loans against mutual funds.
In 2023, it acquired Unofin, a healthcare-focused fintech, to enhance its reach in healthcare financing and also raised INR 24 crore in debt from Lighthouse Canton.
The firm's focus on supply chain financing has made LT Credit a key player in providing trade credit to small retailers, particularly in grocery and pharmacy sectors. With over 50,000 retailers onboarded and INR 1,000 crore disbursed against more than 4.5 lakh invoices, LoanTap now aims to fund 1 million invoices over the next year with average ticket sizes between INR 8,000–INR 15,000.
LoanTap's BICRI (Business Indicator for Credit Ratings in India) engine is at the core of this strategy. It delivers an alternative, transparent creditworthiness assessment by integrating with B2B platforms and enabling distributor-led financing—critical for closing India's INR 33.2 lakh crore MSME credit gap.
A spokesperson from July Ventures said, "LoanTap's technology-first, embedded credit approach aligns perfectly with our thesis of backing category-defining platforms. Their integration of ecosystem knowledge with BICRI makes them a strong contender to address India's vast MSME credit shortfall."
With this capital infusion, LoanTap is poised to continue empowering India's small businesses through smart, scalable credit solutions.
