LoanTap, a digital lending platform has raised ₹74 crore in its pre-Series C funding round led by July Ventures. The round also saw participation from existing backers 3one4 Capital, Avaana Capital, Kae Capital, and the Swapurna Family Office.
The round comprises ₹54 crore in equity and ₹20 crore in venture debt.
The fresh equity funding raised will be used to fuel its supply chain financing business. The venture debt infusion is intended to provide LoanTap with additional flexibility to scale its operations efficiently.
Founded in 2016 by Satyam Kumar and the late Vikas Kumar, LoanTap has evolved from a consumer-focused online lending platform into a focused fintech lender addressing credit gaps in the underserved micro, small, and medium enterprises (MSME) segment.
The company’s pivot has been reinforced by its proprietary credit assessment engine, BICRI (Business Indicator for Credit Ratings in India), designed to help lenders evaluate the creditworthiness of retailers who lack formal credit histories. Its BICRI engine integrates with B2B e-commerce platforms, enabling distributors to set and scale credit limits for retailers, thus facilitating better inventory management and cash flow.
LoanTap’s middleware technology platform, used by three financial institutions, also allows banks and NBFCs to efficiently originate and manage loans to small businesses.
Over the last 24 months, LoanTap has financed over 4.5 lakh invoices worth more than ₹1,000 crore, reaching over 50,000 retailers across 26 cities. The company now plans to expand to over 2 lakh retailers and finance one million invoices in the next 12 months with an average ticket size of ₹8,000 to ₹15,000.
The company ended FY24 with ₹67.5 crore in revenue, though it also reported a net loss of ₹12.7 crore. The leadership is now in the process of restructuring following the tragic passing of co-founder and CTO Vikas Kumar in April 2024, with plans to elevate an internal leader to the role of co-founder and appoint a new CTO.
LoanTap’s acquisition of Unofin, a healthcare-focused fintech, in March 2023 has also helped it enter medical financing.
Satyam Kumar, CEO & Co-founder, LoanTap said, “India’s MSME sector is undergoing a massive transformation, and we plan to use this momentum to double down on invoice financing, an area we see as a powerful enabler for MSME growth across India. BICRI also enables distributors to evaluate and extend business and trade credit to retailers. Together, with these two engines, capital access and credit preparedness we plan to drive the next phase of MSME empowerment.”
A Spokesperson at July Ventures said, “At July Ventures, we believe in backing scalable digital platforms that are category-defining. LoanTap’s sharp focus on technology-led, embedded credit for MSMEs aligns perfectly with our thesis. Their ability to combine deep retail ecosystem understanding with a data-led credit engine like BICRI positions them uniquely fill in the staggering 33.2 lakh crore MSME credit gap. We’re excited to partner with them and the co-investors on this next phase of growth.”
