LoanTap raises ₹74 crore to boost MSME credit access
In a significant development that will have a positive impact on the micro, small, and medium-sized enterprises (MSMEs), LoanTap, a leading fintech company, has raised ₹74 crore in a pre-Series C round. The funding round, which is a significant milestone for the company, consists of ₹54 crore in equity led by July Ventures and ₹20 crore in venture debt. This latest round of funding will enable LoanTap to further strengthen its supply chain financing operations for small retailers, a critical segment of the Indian economy.
LoanTap’s innovative approach to credit access has already made a significant impact in the market. Using its BICRI credit engine, the company has disbursed over ₹1,000 crore so far, and its plans are to reach out to 2 lakh retailers and fund 1 million invoices. The company’s focus on supply chain financing for small retailers is a significant departure from the traditional approach of lending to large corporates, and its impact is likely to be felt across the entire economy.
The funding round is a testament to LoanTap’s innovative approach to credit access and its ability to identify and address a critical need in the market. The company’s founders have a deep understanding of the challenges faced by small retailers, who often struggle to access credit due to a lack of collateral or a history of defaults. LoanTap’s BICRI credit engine is designed to address these challenges by using alternative data sources and credit scoring models to assess the creditworthiness of small retailers.
The company’s approach is not only innovative but also scalable. By using technology to assess credit risk and automate the lending process, LoanTap is able to disburse credit quickly and efficiently to small retailers. This is in contrast to traditional lenders, who often rely on manual processes and require extensive documentation from borrowers. LoanTap’s technology-driven approach has enabled it to disburse credit to small retailers in a matter of days, rather than weeks or months.
The impact of LoanTap’s funding round will be felt across the entire economy, particularly among small retailers who are critical to the growth and development of MSMEs. By providing access to credit, LoanTap is enabling small retailers to invest in their businesses, expand their operations, and create jobs. This, in turn, will have a positive impact on the overall economy, as small retailers are major contributors to GDP and employment.
The funding round is also a significant vote of confidence in LoanTap’s business model and its potential for growth. July Ventures, the leading venture capital firm that led the equity round, has a reputation for backing innovative startups with high growth potential. The fact that July Ventures has invested in LoanTap is a testament to the company’s potential for growth and its ability to scale its operations.
In conclusion, LoanTap’s latest funding round is a significant development that will have a positive impact on the MSME sector. The company’s innovative approach to credit access and its focus on supply chain financing for small retailers are critical to the growth and development of this critical segment of the economy. With its BICRI credit engine and technology-driven approach, LoanTap is well-positioned to continue to grow and expand its operations, and its impact will be felt across the entire economy.
Source:
https://startuptalky.com/news/loantap-raises-inr-74-crore-pre-series-c-funding/
