MoneyTap will use the money to grow its loan book to ₹5,000 crore in the next 12-18 months, invest in technology, data science, and launch its own non-banking financial company (NBFC). The lending startup also has plans to expand its footprint from 60 to 200 Indian cities.
“Our mission has been to provide credit to the growing middle-income groups, in the most flexible, convenient and affordable manner, with money being available to the customer on tap. We will use this funding to scale our business, innovate with data-backed lending models and continue to hire aggressively. We will also use the funds to expand our credit offerings via our own NBFC," Anuj Kacker, co-founder of MoneyTap, said in a statement.
MoneyTap offers customers easy access to credit via a mobile app and is largely aimed at working professionals. The app offers instant loans starting from ₹3,000 to ₹5 lakh, charging 15-19% interest per annum.
The startup offers credit in the form of a ‘credit-line’ with an option to secure a predetermined un-collateralized loan instantly. MoneyTap is one of the growing number of tech startups that are using alternative credit scores to underwrite borrowers. Banks usually depend on credit scores supplied by credit bureaus to underwrite loan applications, but the scores may not always portray an accurate indicator of a borrower’s creditworthiness.
New-age lenders like MoneyTap collects customer data such as bank statements, salary slips, information such as text messages and contacts stored in a smartphone, and location data to further underwrite potential borrowers.
Founded in 2015, the startup claims to have created a loan book of ₹1,000 crore and achieved an annual disbursal run rate of ₹2,500 crore in the last three years. MoneyTap secured an NBFC licence in September 2019.
“MoneyTap’s unique line of credit products addresses the significant need for consumer credit that is seamlessly distributed to end-users. We believe they are the leaders in the industry in terms of volume growth and managing risk at scale. We look forward to working with them to expand their mission and vision," said Max Chee, head of Aquiline Technology Growth.