[Funding Alert] MoneyTap Raises INR 500 Crore in Series B Funding
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Mobile-app based credit line providing fintech start-up, MoneyTap, has raised INR 500 crore in series B funding led by Aquiline Technology Growth and RTP Global, along with Korea and Japan-based investors. Existing investors, Sequoia India, Prime Venture Partners and MegaDelta also participated in the round. The funding round is a mix of equity and debt.
Founded in 2016 by Bala Parthasarathy, Anuj Kacker and Kunal Varma, MoneyTap recorded four times growth last year and also secured an NBFC license from the Reserve Bank of India in 2019. The Bangalore-headquartered start-up has till date created a loan book of INR 1,000-plus crore and achieved a disbursal run rate of INR 2,500 crore a year.
MoneyTap will use the funding raised to expand its team, and in technology and data sciences. The start-up also plans to launch its NBFC operations. The start-up wants to massively increase its geographical footprint from 60 to 200 Indian cities.
Talking about the recently raised funding, Anuj Kacker, co-founder of MoneyTap, said, “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.”
The Investors Take
“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,” Max Chee, Head of Aquiline Technology Growth, said in a statement.
According to Abheek Anand, managing director of Sequoia India which backed the start-up earlier as well, said, “We are thrilled to see MoneyTap’s recent performance and their laser focus on solving a clear customer pain point. They have successfully balanced growth, profitability and book quality—three of the most important indicators of an enduring fintech business.”
MoneyTap provides credit line in the range of INR 3,000 to INR 5 lakh at interest rates starting at 13 per cent per annum. The start-up also follows a policy of ‘no usage, no interest’ on the provided credit line, meaning that you will not be charged interest for an approved credit till the time you withdraw it from the bank.