RTP Global, Sequoia lead Series B for India’s MoneyTap
Indian app-based lending start-up MoneyTap has raised $70 million in a Series B round led by Aquiline Technology Growth (ATG), RTP Global, and Sequoia India.
Existing investors Prime Venture Partners and MegaDelta also participated in the round, according to reports in Indian media. Previously, the firm received $9 million in Series A funding. RTP Global, a Russian venture capital firm formerly known as Ru-Net, is an investor in eight companies in India including Cred, Snapdeal, Rebel Foods, and Practo.
Founded in 2015, MoneyTap offers users, usually salaried employees, a revolving line of credit capped at INR500,000 ($7,000) by connecting them with partner banks in 44 cities. Users can customize their loans by amount and duration.
MoneyTap charges an annual maintenance fee, a transaction fee and late payment fees for delayed repayments. It also offers a MasterCard-branded credit card to facilitate offline purchases. The app is currently available in seven languages.
The company claims to use alternate credit models that study non-public financial data like salary slips and user location data to improve the credit risk assessment. Interest rates charged for loans range between 15-19% per annum. It claims to have disbursed $350,000 in loans over the last three years.
“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,” said Max Chee, head of ATG, a New York-based venture capital firm.
The lending start-up will use the funds to expand its presence nationwide aiming to target users across 200 cities following the acquisition of a non-banking financial company license in September. It will also seek to increase the size of its 35-strong team in Bengaluru to deal with the expansion.
Other VC-backed Indian start-ups seeking to digitize financial credit processes for individuals in a similar manner include Kissht, InCred, Capital Float, EarlySalary and Paysense. Earlier in the month, epiFi, a fully digital bank, raised $13.2 million in a seed round led by Sequoia India and Ribbit Capital with plans to launch operations in the coming months.
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