The international investment firm Lighthouse Canton has contributed Rs 24 crore ($2.9 million) to the digital loan marketplace LoanTap.
One of the initial checks for LoanTap’s digital lending platform LTFLoW came from the financing. The business claims that Lighthouse Canton contributed Rs 15 crore while keeping the identities of the other investors in the round a secret.
In addition to providing lending solutions to micro, small, and medium-sized firms (MSMEs) in the personal finance, supply chain invoice financing, and electric two-wheeler categories, Satyam and Vikas Kumar founded LoanTap to cater to salaried professionals.
Over ten firms, including some of India’s largest banks, non-banking financial institutions (NBFIs), payment platforms, and ERP solution providers that serve almost 2 million small and medium-sized businesses, are clients of the Pune-based startup (MSMEs).
LoanTap offers loans with yearly interest rates of 15–24% for amounts between 50,000 and 10 lakh rupees. It has two NBFC companies that are registered with the RBI and claims to have arranged loans totaling Rs 1,700 crore for its subsidiaries and technology clients.
A $10 million Series B investment was part of the company’s total funding of about $24 million, which was secured in September 2019. It contends with MoneyTap, Fibe (formerly EarlySalary), and Paysense.
In response to allegations that they were involved in money laundering and posed a threat to India’s financial security, the Indian government has begun the process of barring 138 betting applications and 94 lending apps having ties to China. LazyPay and Kissht, two Indian lending applications, have also been blacklisted by the Ministry of Electronics and Information Technology (MeitY), in addition to apps with ties to China.