MoneyTap raises $12.3 million led by Sequoia

MoneyTap, a lending app, has raised $12.3 million led by Sequoia Capital India Advisors to expand its consumer credit line, the company said on Wednesday. Existing investors New Enterprise Associates (NEA) and Prime Venture Partners also participated in the round.

MoneyTap was founded in September 2015 by Bala Parthasarathy, the former managing partner and founder of Prime Venture Partners, a Bengalurubased seed fund. The app was rolled out exactly an year later and is available on Android platforms.

Through MoneyTap app, working professionals can avail instant loans. The loans range from ₹3,000 to ₹500,000 and are charged at 15-19% interest per annum, Parthasarathy, chief executive officer of MoneyTap (MWYN Tech Pvt. Ltd), said in an interview.

What sets it apart from other alternate lending start-ups is that MoneyTap offers what is called a “credit line.” In other words, it is an option to secure a pre-determined un-collateralised loan amount instantly. The company claims to be the first to offer this service. With fresh funds, MoneyTap will expand to 50 cities from about 14 currently, and look to offer line of credit worth ₹300 crore by March 2018.

“Today, in the banking system you either get a loan or a credit card--those are the only two lending products in the unsecured consumer lending space. What we are offering is a consumer line of credit,” Parthasarathy said.