Fintech lender MoneyTap is set to start disbursing loans as an NBFC from next month, and is also finalising its fund-raising plans.
“Fund-raising in terms of equity and debt is on the cards. We should be able to disclose more details in January. Next year, in 2020, we will look at fund-raising plans,” said Kunal Varma, co-founder and chief business officer, MoneyTap, adding that it will begin disbursing loans as an NBFC in January.
MoneyTap, an app-based credit line, received its licence to operate as an NBFC from the Reserve Bank of India in September.
It had raised $1.23 crore in 2017 in a round led by Sequoia Capital India. Varma said the lender will continue to focus on retail lending using technology, but could foray into newer segments such as financing consumer durable purchases. “We don’t see any reason to change our product strategy in the near future. Credit line will be our main product.
“We have started diversifying a bit and experimenting with different use case lending strategy,” he told BusinessLine.
It has a registered customer base of 85 lakh, with an average ticket size of ₹35,000. Varma remains optimistic about business prospects and said the company has not been impacted by the liquidity crunch due to its focus on retail lending. It works with RBL Bank and other NBFCs as partners.
“Banks and other NBFCs had direct exposure, and that created an environment of caution for us.
“Overall liquidity cost, or the cost of funds, increased by about 75 basis points when compared to 12 months ago,” he said, adding that the cost of funds for these partners have risen.