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OpenTap, a Chennai-headquartered start-up focusing on the alternate lending segment, has raised about ₹3 crore funding from HNIs (high networth individuals). The money will be used to strengthen its technology infrastructure and widen the reach of its financial services network across the country.
“Having established a strong footing in the alternate lending space, the additional funds will be very useful to further propel our growth. We will also utilise the funds for team enhancement and marketing, to continue identifying and servicing credit-worthy customers,” said Senthil Natarajan, co-founder and CEO of OpenTap.
Founded in 2015 by three former investment bankers, the start-up currently focuses on providing short-term credit for the vastly under-served blue collar workforce, whose monthly income is below ₹25,000, according to a statement.
OpenTap currently has an active borrower base of over 1,200 individuals and a loan book size of over ₹3.5 crore. The start-up aims to reach ₹100 crore and add 40,000 customers by the end of the calendar year 2018.
“While most of the established financial institutions continue to focus on the higher strata customer segment, there is a sizeable opportunity in the mid to lower segment of the blue collar workforce, who lack the security or the credit scores needed by these institutions to raise a loan in time of need,” stated Natarajan.
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