In a significant vote of confidence for small business lending in India, Loantap, a Pune-based digital lender, has raised $6.2 million in equity funding, led by July Ventures. The round also saw participation from existing investors including 3one4 Capital, Avaana Capital, Kae Capital, and the Swapurna Family Office.

In addition, the company secured $2.3 million in venture debt, bringing its total capital raised to approximately $26 million.

The fundraise comes amid a pivotal chapter in Loantap’s journey. Once a consumer-lending focused fintech, Loantap has undergone a strategic transition — now targeting small merchants like pharmacies and stationery shop owners. With a clear focus on underserved micro-enterprises, the company has consciously moved away from unsecured personal loans, instead sourcing those for NBFC partners.

Founded in 2016 by Satyam Kumar and the late Vikas Kumar, Loantap has emerged as a tech-first lender building bridges between traditional financial institutions and the country’s informal retail economy.

“India’s small merchants don’t lack ambition — they often lack timely and trusted access to working capital,” said CEO and co-founder Satyam Kumar. “Loantap wants to change that — not just by lending, but by becoming the infrastructure that powers credit for the underserved.”

Today, Loantap claims an annual disbursal run rate of ₹600 crore across 26 cities, catering to nearly 50,000 retail customers. With a vision to grow disbursements to ₹900 crore by FY26, it is squarely focused on merchants with annual turnovers below ₹20 lakh, offering credit lines primarily for inventory purchases.

Adding another layer to its model, Loantap has built a middleware tech platform that allows banks and NBFCs to digitally originate and manage SME loans. The software is already in use by three financial institutions, marking a move beyond just lending — into being a credit-enabling platform.

The latest round follows several milestones:

• In March 2023, Loantap acquired Unofin, a healthcare-focused fintech, to strengthen its footprint in healthcare finance.

• Later that year, it raised ₹24 crore ($2.9M) in debt from Lighthouse Canton.

However, the last year has also brought its share of challenges. Following the passing of co-founder and CTO Vikas Kumar in April 2024, the company is preparing for a new leadership phase — set to elevate a senior executive as co-founder and appoint a new CTO from within its existing talent pool.

Loantap closed FY24 with ₹67.5 crore in revenue and a net loss of ₹12.7 crore — numbers that reflect a company in transition but with clarity on where it’s headed.

As India’s credit landscape matures, Loantap’s shift to enabling small businesses — supported by capital, partnerships, and technology — positions it as a quiet but determined force in the next wave of inclusive fintech.