MoneyTap – India's first app-based personal line of credit

MoneyTap raised $82.3 million. The company was founded in 2015 by Bala Parthasarathy, Kunal Verma, and Anuj Kacker. The startup had 300,000 registered customers from 14 cities in India within eight months of its launch.

By Digital Yug Oct 28 2021 12:56PM 506 Read
MoneyTap Startup - The first startup in India to offer users instant lifetime credit of up to Rs. 5 lakhs.

Don't you believe having a unique string of credit would have made things easier for you? Who doesn't want a hassle-free credit with no paperwork and no formalities? The frosting on the cake will be the money that will get deposited into your account as you continue to repay the loan. If you believe this isn't possible, you're mistaken. This goal has become a reality thanks to MoneyTap, a Bangalore-based firm. The startup promises to be India's first consumer-facing app-based personal line of credit.

Note : MoneyTap is the first startup in India to offer users instant lifetime credit of up to Rs. 5 lakhs.

MoneyTap Startup – Key Highlights

  • Startup Name - MoneyTap
  • Headquarters - Bangalore
  • Founders - Bala Parthasarathy, Kunal Verma, and Anuj Kacker
  • Sector - Fintech
  • Founded - October 2015
  • Parent organization - MWYN Tech Private Limited
  • Contact - [email protected]

MoneyTap – Instant Credit App

MoneyTap is a trustworthy and reliable software with numerous advantages. The software provides immediate online loans through a paperless process that does not involve a trip to the bank. Furthermore, the interest gets charged on the amount borrowed. A loan obtained using their app requires no collateral and offers a 2-36 months flexible repayment period.

Fun Fact : MoneyTap is the first startup in India to provide customers with instant lifetime credit of up to Rs.5 lakh.

MoneyTap Startup – How it works?

MoneyTap loans are simple to obtain. First, eligible candidates must download the app and complete the KYC. Then, the loan is accepted after the KYC processes are met, and the consumer gets handed a MoneyTap credit card with the sanctioned amount loaded on it. It can get used as a credit card or to take money out of your MoneyTap account. Then, after making the repayments, and the performance is no longer required, the report can be quickly closed through their website or app.

Note : To qualify for MoneyTap Loans, you must be between the ages of 23 and 55 and have a steady source of income. For example, a person with a minimum monthly in-hand wage of Rs 15,000 can apply for loans on the site.

MoneyTap – Founders & Team

  • Bala Parthasarathy – Bala is MoneyTap's CEO and co-founder of several Silicon Valley firms, including Snapfish (sold to Hewlett Packard). By amassing 100 million users and $300 million in income, he has made a significant contribution to Snapfish's success. In addition, he shaped firms including ZipDial (sold to Twitter), EZETap, Happay, and others while at AngelPrime.
  • Kunal Varma – Kunal is a serial entrepreneur who created Whimsia Custom Works, a firm specializing in personalized items, and Aspire, a company that makes learning programs and assessments for job searchers and college grads. In addition, Kunal co-founded Tap to start, a job discovery tool, with Anuj Kacker.
  • Anuj Kacker – Anuj is MoneyTap's COO. Anuj has worked with well-known brands such as Airtel, Reliance, and JWT, gaining experience in various sectors. He co-founded Tap to start, which expanded to 300,000 users in two years and became profitable. In 2015, Anuj left Tap to begin to join MoneyTap.

According to 2019 data, the MoneyTap workforce consists of 30 workers, with a small office in Mumbai and Bengaluru headquarters.

MoneyTap – Brand Name and Logo

  • Brand Name - MoneyTap was picked as the name since the software allows users to get money with just a finger tap.
  • Logo – The logo of the company is in white and bright orange colour.

MoneyTap Note : According to the founders, consumers can borrow between Rs 3,000 and Rs 5 lakhs using the app and choose from various repayment choices ranging from 2 to 36 months.

MoneyTap Startup – Investors and Funding

To date, MoneyTap has raised $82.3 million in two fundraising rounds. In addition, MoneyTap raised $70 million (500 crores) in its most recent game in January 2020. MoneyTap's funding and investor information may get found here.

DateStageAmountInvestor
Jun 14, 2017Series A$12.3 millionSequoia India, New Enterprise Associates, Prime Venture partners
Jan 28, 2020Series B$70 millionSequoia Capital India, RTP Global, Prime Venture Partners, Aquiline Technology Growth & MegaDelta Capital

MoneyTap Customer Acquisition – Marketing Strategy

MoneyTap was able to create a vast customer base in a short amount of time. The startup had 300,000 registered customers from 14 cities in India within eight months of its launch. Some of MoneyTap's consumers come to them naturally. Google, social media, and content marketing got used to promote the company's products. Bala estimates a billion consumers in the country, but MoneyTap barely serves 1% of them. Even doubling this ratio to 2%, he believes, would be a big win.

MoneyTap – Challenges

MoneyTap has several significant obstacles, such as:

  • Finding dependable borrowers: Finding reliable borrowers to whom credit got extended without danger of default was a considerable challenge.
  • Cash at minimal cost: Obtaining cash at minimal costs is the most challenging thing for a consumer lending company.
  • Relationship with banks: It was not accessible to maintain excellent and credible relationships with banks and non-bank financial institutions (NBFIs).

MoneyTap - Competitors

MoneyTap's main rival is Finomena. It got formed in New Delhi in 2015. Some of its other main competitors are as follows:

  • PaySense
  • ZestMoney

Both of these companies, which got launched in 2015, are in the same market. However, PaySense is based in Mumbai, whilst ZestMoney is based in Bangalore.

MoneyTap - Accomplishments

Some of the accomplishments of the company are as follows:

  • 5M Downlaods - MoneyTap has to get downloaded over 5 million times. This number, however, does not reflect consumers who have a credit line, as the rejection percentage from the pool of applicants might be as high as 60% to 70%.
  • Active Client Base - Almost all of MoneyTap's clients who have given credit lines are active and have used the app to withdraw funds many times. The company's average lending size is Rs 30,000–35,000, and the average client age is 28–30 years.
  • Serving 60 Locations - MoneyTap is currently available in 60 locations across India, with most of its users hailing from Delhi-NCR, Bengaluru, Mumbai, and Chennai. The organization intends to expand its footprint to 200 cities shortly. MoneyTap also says that its non-performing assets are considerably below 1% of total assets.

MoneyTap - Awards and Recognitions

  • Best Innovative Lending Product/Service' in the Payment & Fintech category – By 8th India Digital Awards, IAMAI
  • Best FinTech Company in the loan category - PICUP Fintech, 2017

MoneyTap – Affiliates & Partenships

  • RBL Bank : MoneyTap's first banking partner was RBL Bank, with whom it debuted its product. MoneyTap provided consumers with speedy judgments and access to money around the clock because of RBL's technology. In addition, RBL Bank offers a MoneyTap-RBL Credit Card with a credit line.
  • Aditya Birla Finance Limited : MoneyTap and Aditya Birla Finance Limited announced cooperation in 2017. (ABFL). MoneyTap got partnered with several other banks and NBFCs.
  • Pawtect : MoneyTap established a relationship with Pawtect in December 2020 to deliver Pet Insurance Policies to their workers.

MoneyTap – Future Plans

MoneyTap's plans include the following:

  • It plans to expand into other Tier II and III cities in India and international markets such as Southeast Asia and the Middle East.
  • The organization claims to have a loan book of 1000 crores to increase it to 5000 crores by 2021.
  • In India, services got expanded to 200 cities.
  • Increasing the number of banks with which we collaborate.
  • The company presently focuses on consumers aged 29 to 31, with monthly salaries ranging from INR 30,000 to INR 40,000, but it plans to expand to groups with incomes as low as Rs 10000-15000 shortly.
  • MoneyTap was granted an NBFC license in September 2019 and expects to open its own NBFC soon.

MoneyTap Revenue Model – Interest & Processing Costs

MoneyTap follows sound business principles since money lending necessitates meticulous attention to detail. It generates revenue by sharing revenue with banking partners. A nominal Rs 500 is payable every time a consumer gets accepted for lifelong access to a credit line. The money gets returned once the customer has spent it for a year. In addition, the specific interest paid by the consumer and the processing costs imposed each time a person borrows boosts profitability.

Digital Yug
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Digital Yug is an Indian digital media platform that posts real life stories, events, news, and blogs about startups, entrepreneurs, and successful people. The company was founded by Dr Anil Diggiwal in 2018 and is currently a privately owned, bootstrapped organization. This Jaipur based company publishes & focuses on undiscovered, small startup stories.

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