Bengaluru-based MWYN Tech Pvt. Ltd, which runs fin-tech startup MoneyTap, has raised $12.3 million (around Rs 79 crore) led by Sequoia India. Existing investors NEA and Prime Venture Partners also participated in this round, a company statement said.
The startup will use the funds to expand its app-based consumer credit line in India by expanding to 50 cities in India by the end of 2017. It will also partner with six banks and NBFCs. MoneyTap is aiming to issue credit lines worth Rs 300 crore by the end of the current fiscal year, the statement added.
Founded in September 2016 by Anuj Kacker, Kunal Varma and Bala Parthasarathy, MoneyTap provides credit services through an app. It has tied up with banks to offer money on demand with zero collateral and without guarantors. According to the company, the platform has more than 3 lakh users, the majority of whom have a monthly income of Rs 30,000-40,000 and are aged between 28-32 years.
Available on the Google Play Store, the startup evaluates a user’s eligibility, after which it provides an instant, real-time decision on the application along with the amount the user is eligible for. Users can borrow between Rs 3,000 and Rs 5 lakh or up to their maximum eligibility limit. They can also decide their own equated monthly instalment plans with flexible payback periods ranging from two months to three years.
“We deeply believe that the rapidly growing middle-income group in India is largely underserved by financial institutions. They are app-savvy and very demanding,” said Parthasarathy in the press note.
MoneyTap had raised an undisclosed amount of funding from seed-stage investment firm Prime Venture in October 2016.
Of late, the fin-tech space has seen a lot of investment activity. This month, online peer-to-peer lending platform LoanMeet, which is run by Strivers Solutions Pvt. Ltd, had raised seed funding from a clutch of investors including Chinese entrepreneur-turned-investors Cao Yibin and Huang Wei, along with KrazyBee.com co-founder and CEO Madhusudan E.
In another deal this month, mobile payments startup Ftcash had raised an undisclosed amount in pre-Series A funding from Silicon Valley-based early-stage venture fund 500 Startups and existing investor IvyCap Ventures.
A recent VCCircle analysis showed that 25 fin-tech startups raised funding since early 2017. The inflows have been well-distributed across the broader fin-tech space, with digital wallets, online lending and payment gateway startups garnering strong investor interest.