Online lending startup LoanTap has raised $4 million in a round of funding with a mixture of debt and equity funding from Kae Capital, India Quotient, IFMR and MAS Financial Services Ltd. Equity infusion to the platform was led by Kae Capital, with participation from its existing investors including India Quotient and HNI Investors. On the other hand, debt has been raised from leading non-banking financial companies (NBFCs) such as IFMR and MAS Financial Services.

It had raised $3 million in a Series A round of funding from HNIs, including Abhishek Pandey and Jaysukh Sapra back in August 2016.

Following the funding, LoanTap aims to bolster collection features in its software and reaching out to Tier 2  & Tier 3 (major capital cities and business hubs) of India. It claims it is receiving 5,400 to 6,000 loan inquiries every month and that around 600 applications make the initial cut and go through its credit process. The company has received a sum of more than 47,000 loan applications since its launch less than a year ago.

Meanwhile, LoanTap says that its software carries out underwriting on each and every application, which involves IP address, social media and identity searches on individual profiles built over traditional underwriting.

LoanTap is a Non-Banking Financial company and offers something known as EMI-free loans where the applicant has to only serve monthly interest on the loan outstanding, while he can schedule principal payments, based on his projected incentive or bonus credits. The company says that 38% of its credit portfolio consists of such EMI-free loans.

The company also offers Advance Salary loans, and long term loans for paying rental deposit charges.

Competition

In recent times, there has been a flurry or lending startups which have raised funding.

– MoneyTap raised $9 million in Series A funding led by Sequoia India, New Enterprise Associates (NEA) and Prime Venture Partners.

– EarlySalary, a company which offers salary advances and instant cash loans, raised $4 million in funding from IDG Ventures India and Dewan Housing Finance Corp (DHFL) in May.

– Ezcred raised Rs 6.5 crore in a seed round of funding from various investors including Dheeraj Pandey, CEO Nutanix; Rajesh Yohannan, former managing director at Citibank; and Akash Garg, director of engineering at Uber.

– Paysense raised $5.3million from Jungle Ventures. It had earlier, in 2015, raised $2.3 million from Nexus Venture Partners.