MoneyTap, consumer lending startup, has acquired a funding of $9 million from Sequoia India along with its existing investors Prime Venture partners and NEA.
Company was established in 2015 by Bala Parthasarathy, Kunal Verma and Anuj Kacker and it gives credit to the self employed professionals and salaried employees through app. It is seeking for associating with the six other banks apart from RBL, which is its existing partner. Earlier it had acquired a fund of $3.3 million.
Plan for enhancement of services
Startup is looking to expand its leg in 50 more cities with the acquired fund as recently it is working in only 14 cities along with widening its research on data and analytics. Well it plans to spend worth Rs 300 crore till the end of the current fiscal year.
Working through organic route
Parthasarathy said that, “Since we are in the business of giving money, acquiring customers through the organic route and digital outreach is good enough for us to reap the scale we are looking at”.
App will evaluate a user within 4 min
Company said it will evaluate the eligibility of a user within 4 minutes and serves an instant decision for its application along with the amount for which the user is eligible.
How app works
Utilizing the credit line, customers can borrow minimum of Rs 3,000 or maximum of Rs 5 lakh or according to their qualification. Clients can choose their own EMI ranges with flexible time for returning from 2 months to 3 years. Interest is to be paid for the amount borrowed and rates can be minimum of 1.25% per month.
Consumer credit is a complex problem
Abheek Anand, principal at Sequoia Capital India Advisors, said, “Consumer credit in India is highly under-penetrated and is a complex problem to solve. MoneyTap combines an experienced team with a designed product – and their strong early traction addresses this massive market opportunity.”
Competitors of MoneyTap
The money lending platform is being currently led by leaders like Lendingkart and Capital Float that targets SMEs whereas Moneytap is focused on individuals for lending money.