Loantap, Pune's leading digital lender, has raised $6.2 million in its latest equity funding round, led by July Ventures. Existing investors 3one4 Capital, Avaana Capital, Kae Capital and Swapurna Family Office also participated in this round. The company has also raised $2.3 million in venture debt in this funding round.

• Loantap's total funding is approximately about $26 million, when combined with the venture debt.
• Loantap secures $6.2 million equity and $2.3 million venture debt, totaling $26 million in funding, led by July Ventures to scale small merchant lending in India.
• Pune-based digital lender targets Rs 900 crore disbursements by FY26, serving 50,000 small merchants across 26 cities with credit lines for inventory purchases.

Loantap pivots to small business loans, leveraging its middleware tech platform to support NBFCs and banks, following Unofin acquisition in healthcare finance.

Also Read: Lab-grown Diamond Jewelry Brand True Diamond Hits $3 Million Pre-Series A Fund

In March 2023, LoanTap had acquired Unofin, a healthcare focused fintech startup to increase its share of the healthcare finance market. That same year, Loantap completed a debt round of Rs. 24 crore ($2.9 million) from global investment institution Lighthouse Canton.

Founded in 2016 by Satyam Kumar and Vikas Kumar, Loantap has transitioned its business model from consumer borrowing to now serving small merchants, such as pharmacies, and stationery. The company has scaled down its unsecured consumer loan book significantly, while now sourcing unsecured loans for NBFC partners, not lending, via its balance sheet.

Loantap currently claims an annual disbursal run-rate of Rs. 600 crore in 26 cities, targeting about 50,000 retail customers. The company aims to grow annual disbursements to Rs. 900 crore by FY26. The company goes after merchants with turnovers under Rs. 20 lakh and provides credit lines which are then typically used to purchasing inventory from distributors.

Loantap has also built a middleware tech platform that enables banks and NBFCs to originate and manage loans to small businesses. This software has been implemented by three institutions.

Also Read: Education Financing Marketplace GyanDhan Wins Rs. 50 crore Series A Fund

The company closed FY24 with Rs. 67.5 crore revenue and a net loss of Rs 12.7 crore. After the passing of Co-Founder and CTO Vikas Kumar in April 2024, the company is planning to promote a senior employee to co-founder and hire a new CTO from within the current team.