Pune, Maharashtra, India – Business Wire India LoanTap, a homegrown digital lender, has announced its debt listing with BSE. LoanTap a digital lending FinTech firm with two in-house NBFC entered the lending industry in 2016. The entity has successfully managed to grow its AUM and disbursed more than Rs. 700 Cr. so far.
Like any other NBFC firm, LoanTap borrows funds from banks and other NBFCs to provide credit facilities to customers with specific needs. LoanTap differs itself from other FinTechs, basis their fast processes, flexible repayments and friendly products to its consumers. With this listing LoanTap has raised 20 crores and aims at diversifying its borrowing profile, by giving them a competitive advantage in terms of, cost of borrowings, and asset liability management.
LoanTap intends on bringing down its cost of funding and by expanding to a diversified pool of lenders, the entity shall have access to different sources of funds. Apart from raising funds through debt in the form of term loan from banks and other NBFCs, LoanTap has expanded its borrowing portfolio through MLDs – Market Linked Debentures, NCDs – Non-Convertible debentures and CPs – Commercial papers etc. for raising funds to enable their new ventures in the lending industry. In last five months, LoanTap has raised more than Rs 100 crore through issuances of debt products and has successfully diversified its borrowing mix.
LoanTap as an entity is always working on how to deliver fast lending solutions to consumers with immediate need. Its aim is to provide 100% financial inclusion through innovative products, customized repayments, easy processes and AI collaboration.
Speaking on the occasion Mr. Ashish Jain, Dy. CFO, LoanTap, said, "Diversification is not only important for asset allocation but equally imperative for borrowing profile. It is therefore, important that NBFCs diversify their borrowing portfolio and not be dependent only on banks and other NBFCs for funding. LoanTap team has been successful in diversifying the borrowing mix and today more than 45% of our fund requirements are met by issuance of debt products. This has not only helped us diversification rather it has resulted in bringing down our weighted average cost of capital (WACC) by almost 100 bps. Each of our issuance has received a warm response from market and we have been able to cater to HNIs, Family offices and AIFs. With debt listing in place, we will continue to design more products by which we shall be able to provide higher returns with safety to our investors.
We understand the financial needs may differ, especially in country like India wherein dynamics may change from one household to another. LoanTap as a brand would want to be known as the most preferred lending FinTech entity and establish a strong network of consumers who are in need of credit, this is just one step towards it." About LoanTap LoanTap is a homegrown, hyper-growing digital lender with its own NBFC, committed to delivering fast, flexible, friendly personal loans to its audience. Founded in 2016 with an aim to provide a seamless consumer experience from application to disbursal, LoanTap offers an array of solutions like Personal Loan, EMI Free Loan, Personal Overdraft Facility, Credit Card Takeover Loans, Rental Security Deposit Loan, Advance Salary Loan, and House Owner Loan. Currently, their operations are widely spread across 22+ cities including Delhi, Bangalore, Pune, Mumbai, Chennai, Kolkata, Noida, Vadodara, Nasik, etc. The company has received multiple awards including, the “Best Digital Lender” by Business World in 2021 and the “Most Innovative Product” by ET BFSI. LoanTap has raised a total of $25 million till date with recent funding of $12 million in Series B round led by Avaana Capital, along with participation from existing investors including 3one4 Capital, India Quotient, Shunwei Capital, and Kae Capital.