Fintech Startup MoneyTap has secured $12.3 Million of Series A funding led by Sequoia Capital India. The funding round was also participated by existing investors New Enterprise Associates (NEA) and Prime Venture Partners.
The Bangalore-based startup was founded in September 2016 by Bala Parthasarathy (co-founder for Prime Venture Partners), Anuj Kacker and Kunal Varma. MoneyTap provides credit to salaried employees and self-employed professionals through an app. The main aim of the company is to deliver small loans to individuals in partnership with banks in a smooth and efficient manner.
Bala Parthasarathy, co-founder, and CEO of MoneyTap said: ” “We are uniquely placed wherein we sit on top of banks and NBFCs. After downloading our app a consumer can within five minutes know if they are eligible for borrowing credit. They can then complete the KYC formalities on their phone and can borrow any amount under the limit they are eligible for.”
MoneyTap provides loans which range from Rs3,000 to Rs500,000 and are charged 15-19% interest per annum. The startup claims to have a customer base of 3 Lakhs customers on board and currently functional in 14 cities.
The fresh capital will be used to enhance technology, especially to incorporate India Stack features such as the unified payments interface and e-sign, and to expand to 50 cities from the current count of 14 by the end of this year.
Commenting on the investment, Abheek Anand, principal at Sequoia India, said: ” “Consumer credit in India is highly under penetrated and is a complex problem to solve. MoneyTap combines an experienced team with a thoughtfully designed product, and their strong early traction is a testament to the efficacy of their approach to addressing this massive market opportunity.”
Recently, in May 2017 another startup of same category EarlySalary has raised funding from IDG and DHFL.
Indian startups saw $4 billion in risk capital being deployed across 1,040 angel and VC/PE deals between January and December 2016.According to YourStory, In 2016, $4 billion invested in Indian startups – deal value decreased 55%, volume increased by 3% from 2015. On an average, four startup deals were announced every weekday throughout 2016. Read more about Indian Startup Ecosystem.