3one4 Capital leads fresh funding round in digital lending firm Loantap

By Vijayakumar Pitchiah

  • 18 Jan 2019
3one4 Capital leads fresh funding round in digital lending firm Loantap
Credit: VCCircle

Mumbai-based LoanTap Financial Technologies Pvt. Ltd, a digital platform that offers loans and overdraft products to salaried professionals, has raised $8 million (Rs 57 crore at current exchange rates) in a fresh round of funding, the firm’s fifth since inception, led by new investor 3one4 Capital.

Existing investors Shunwei Capital, Kae Capital, India Quotient, Tuscan Ventures and Ashish Goenka, managing director of Suashish Diamonds also participated in the round, the company said in a press note.

In an e-mail response, Satyam Kumar, co-founder and chief executive of Loantap, said that the firm will use around 95% of the capital for inward lending and the remainder will be allocated to ramp up its technology backbone.


“The major portion was raised in equity. It will be tough to slit at the moment, as we are a regulated entity and any instrument conversion is linked to approval from the regulator,” Kumar added.

In its last known funding round in July last year, the company had raised $6.25 million (around Rs 42.8 crore then) from the same existing investors. Shunwei Capital had led that round.

“Their customers are already seeing a solution that very clearly works on their behalf to ensure the optimal experience that lowers costs, increases transparency and extends additional flexibility,” Pranav Pai, founding Partner of 3one4 Capital, said in the statement.



The venture was established in May 2016 by Satyam and Vikas Kumar. Satyam has 17 years of experience in the loans business, having worked at IndusInd Bank, Deutsche Postbank, ICICI Bank and chemicals firm ICI India, where he has built teams, designed products and developed distribution channels.

Vikas, who is Loantap’s chief technology officer, has 16 years of experience in the software industry. Between 2000 and 2010, he founded and exited Brainvisa, a Pune-based e-learning firm. He is also an investor in various startups such as product discovery platform Unbxd, digital marketing startup Mobikon Technologies and online pet store DogSpot.in. He also advises startups on technology and strategy and is part of the Indian Angel Network.


Loantap offers personal loans to salaried professionals earning Rs 30,000 and above and gives loan tenures from six months to five years. The company, whose loans range between Rs 50,000 and Rs 10 lakh, charges anywhere between 15-24% in annual interest. The company lends through its own books and has also partnered with non-banking financial companies and bank to disburse loans.

The company, which is currently operational in 14 cities across the country, claims that it turned profitable within the first five quarters of launching and its loan book is growing at 12% on a  monthly basis.

“We will continue to strengthen our presence in the salaried segment. All our products are showing great traction, and we will build upon the same. We have been growing at 4.8X annually both in loan book size and revenue with net non performing assets below 0.60%,” Kumar added.


Deals in the space

Online lenders have recently attracted considerable investor interest in the fintech space.

On Thursday, Bengaluru-based shopping loan marketplace ZestMoney secured venture debt funding from Alteria Capital as part of an extended Series A round.


In August last year, it had raised $13.4 million (Rs 93.6 crore then) in an extended Series A round led by handset maker Xiaomi. Existing investors PayU, Ribbit Capital and Omidyar Network had also put in money.

Earlier this month, Mumbai-based mobile payments startup ePaylater raised an undisclosed sum from Japan-based GMO Global Fintech Fund as part of its pre-Series A round, in which ICICI Bank had also invested.

Last month, Chennai-based Vivriti Capital Pvt. Ltd, which runs an online platform for institutional debt in India, raised Rs 200 crore (about $28.5 million then) in equity funding from US-based impact investor Creation Investments.

In the same month, Bengaluru-based online platform PerkFinance, which facilitates loans through its lending partners to blue-collar workers, raised $900,000 (Rs 6.5 crore then) in a seed round from China’s Fosun RZ Capital and angel investors Eric Bunting, Krishna Vinjamuri and Karan Virwani. 

At the same time, US-based impact investment firm Gray Matters Capital invested $125,000 (Rs 88 lakh) in education financing firm GyanDhan as part of a larger round in which it put in $375,000 (Rs 2.8 crore) across three startups.

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