Consumer lending startup MoneyTap bags $70 mn in equity, debt capital
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Bengaluru-based consumer lending platform MoneyTap has raised Rs 500 crore (approximately $70.1 million at current exchange rates) in a mix of equity and debt funding from a clutch of investors.

The equity round, representing the company’s Series B funding, was led by US-based venture capital firm Aquiline Technology Growth (ATG), RTP Global and Sequoia India.

Existing investors Prime Venture Partners and MegaDelta also took part in the round. Some South Korean and Japanese investors also contributed to the round, MoneyTap said in a statement.

Debt capital of the overall fundraising was secured from Vivriti Capital, Credit Saison, and other investors. This element was raised in the form of co-lending and credit lines, it added.

The breakup between equity and debt was not disclosed.

The startup will use the funds to accelerate its growth, enhance technology and data infrastructure and will launch non-banking finance operations. It also aims to create a loan book of up to Rs 5,000 crore in the next 12-18 months and is planning to expand operations to 200 cities in the country.

Anuj Kacker, co-founder at MoneyTap, said the latest development reaffirms the company’s leadership position in the fintech sector and the trust it has gained over the years from customers, capital partners and investors.

Separately, ATG head Max Chee said the investment firm was confident in its commitment because of MoneyTap’s credit products and its focus on the seamless distribution of its offerings.

“The co-founders have a clear vision to transform the consumer lending industry and serve the needs of this huge credit market,” RTP Global partner Kirill Kozhevnikov added.

MoneyTap, which is operated by MWYN Tech Pvt. Ltd, was founded in 2016 by Kacker, Kunal Varma and Bala Parthasathy. The company says it provides customers with an app-based credit line with loan tickets of up to Rs 5 lakh and interest rates starting at 13% per annum.

In June 2017, the company raised $12.3 million (around Rs 79 crore) led by Sequoia India. Existing investors NEA and Prime Venture Partners also participated in the round. At the time, the fintech firm said it would use the funds to expand its consumer credit line.

Deals in the fintech segment

Series B equity-debt funding in MoneyTap is the latest example of financial technology as a sector commanding investor attention. Companies in the segment seek to address the growing need for the last-mile delivery of financial services and provide value-added services to consumers across all socio-economic segments.

Earlier this month, artificial intelligence-based wealth management venture INDwealth secured $12 million (around Rs 87 crore) in its Series C funding round. The startup was set up by Ashish Kashyap, the founder of travel platform Ibibo.

Also, this month, escrow-focussed digital payments platform Escrowffrr raised $150,000 (about Rs 1.06 crore) from Inflection Point Ventures, a community of chief financial officers and senior professionals.

In December, mutual fund investments-focussed startup WealthBucket raised Rs 18 crore ( around $2.52 million) in a pre-Series A funding round.

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