MoneyTap raises $12.3 million funds from Sequoia Capital and others

MoneyTap, an app to avail instant loans, has raised $12.3 million from Sequoia Capital India Advisors along with the older investors New Enterprise Associates (NEA) and Prime Venture Partners. Founded in 2015 by Bala Parthasarathy, former managing partner and founder of Prime Venture Partners, a Bengaluru-based seed fund, the startup has raised the money to expand its consumer credit line. It provides consumer a line of credit ranging from INR3,000 to INR1,50,000 and charges an interest rate of 15-19% per annum.

Bala Parthasarathy explained the company’s offering, and stated that “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. What sets us apart from other lending start-ups is that MoneyTap offers a “credit line” which is an option to secure a predetermined un-collateralized loan instantly. The service is aimed at borrowers who are underserved by traditional banks and lending institutions due to their poor or non-existent credit score. Some of the other venture capital-backed platforms offering credit to working professionals are Credit Mantri and EarlySalary.