Lending loan and receiving loans is a part of a transaction between a wealthy and a soon-to-be wealthy person. It can also be a transaction between wealthy and a not-so-wealthy customer, however, all our lives we have heard that banks are the ones giving out loans but that has changed. There are many entities out there which provide loans to customers. Some of the loans provided are not even on paper but are present online.
There are many companies out there providing loans which are online. These companies mostly work in debt and prefer not to be in profit. They look at the bigger picture and don’t care about being in profit early in their startup life. However, there are companies which work on a business plan that is better and does not need them to be in loss.
LoanTap, a Pune-based startup is one such startup where they believe in limiting cash burns and working in profit. It was started by Satyam Kumar and Vikas Kumar in 2016 and has been around for close to three years now. It is basically an online lending platform which works with salaried people and lends them money. The most amazing thing about this startup is that it is already in profit.
According to Satyam, founder of LoanTap, the company entered profits in their second year itself. He stressed the fact that his company tries to maintain a profitable book and nothing else. They take their cash burns very seriously and look to save every penny. The company’s products are fresh and match no other financial tech startup. It provides loans to salaried people which are flexible and do not support EMIs.
The company’s strong model has raised a lot of money. They have received yet another round of funding which seems to be a combination of debt and equity. Many investors including their existing investors invested a total of $8 million in the fifth round of funding. Their existing investors’ list is long and strong. They have Kae Capital, Shunwei Capital, India Quotient, Tuscan Venture and Ashish Goenka also invested as an angel investor. Although these are the media reports.
3one4 capital was the major investor in that fifth round. Satyam was all praise for the firm as he mentioned the Venture Capital Fund as the right partner and that is what the company strives for. This is huge for the fintech startup as they can now increase the number in the loan book. They can now loan up to 90 crores of debt so that the loan book can look a bit pretty for them.