MoneyTap: Instant Loans Are Just A Tap Away

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by the organization it is based on.

Don't you think life would have been easier if you had a personal line of credit at your disposal? Who doesn't want a  hassle free credit, where there are no formalities and paperwork? And the icing on the cake would be money getting topped-up in your account as you keep paying back the borrowed amount.

You are wrong if you think this isn't possible. MoneyTap, a Bangalore based startup has made this dream a reality. MoneyTap claims to be India’s first app-based personal line of credit for consumers.

MoneyTap in a nutshell

Startup Name MoneyTap
Headquarters Bangalore
Founders Bala Parthasarathy, Kunal Verma, and Anuj Kacker
Sector Fintech
Founded October 2015
Parent organization MWYN tech Private Limited

MoneyTap - About
MoneyTap - Industry Details
MoneyTap - Founders
MoneyTap - The Idea And Launch
MoneyTap - Name And Logo
MoneyTap - Products And Services
MoneyTap - Business And Revenue Model
MoneyTap - Customer Acquisition
MoneyTap - Funding
MoneyTap - Challenges
MoneyTap - Competitors
MoneyTap - Achievements
MoneyTap - Awards And Recognition
MoneyTap - Acquisitions and Mergers
MoneyTap - Partners
MoneyTap - Future Plans

MoneyTap - About

MoneyTap is headquartered in Bangalore, India. Started by three serial entrepreneurs—Bala Parthasarathy, Kunal Verma, and Anuj Kacker—MoneyTap was incorporated in October 2015.  It offers instant personal loans of up to Rs 5 Lakhs, with the entire KYC process happening through their mobile app.

MoneyTap aims to deliver quick and flexible personal loans to individuals in partnership with banks—smoothly and efficiently.

The MoneyTap app is a trustworthy and reliable one with many USPs. The app offers instant online loans through 100% paperless process and doesn't require bank visit. Moreover, one has to pay interests only on the amount borrowed. Loan taken through MoneyTap app is collateral free and has flexible loan tenures of 2-36 months.

Getting loans from MoneyTap is super easy. Eligible candidates need to download the app and fill the KYC. After completion of the KYC formalities, the loan is approved and the customer is given a MoneyTap card that's loaded with the sanctioned amount . This can be used as a credit card or for withdrawing from the MoneyTap account. Once the repayments are done and there isn't further need for a MoneyTap account, one can easily close the account through the MoneyTap website or the app.

MoneyTap - Industry Details

With the significant increase in internet users, almost every solution is now available online. Like all other services, financial services have also become accessible through apps and online services. Many Fintech companies are cropping up in the Indian market.

According to a report published by NASSCOM, there are around 400 Fintech companies in India. The Approximate investment made in these companies is $420 million in 2015. The NASSCOM report also states that the fintech software and services market is expected to grow 1.7 times by 2020, making it worth $8 billion.

The Indian government is also launching initiatives to develop Visakhapatnam (Vizag) as the 'fintech valley'.

MoneyTap - Founders

MoneyTap was founded by Bala Parthasarathy, Kunal Varma, and Anuj Kacker, who are IIT and ISB alumni.

Bala Parthasarathy is the co-founder of multiple startups in Silicon Valley, including Snapfish (sold to Hewlett Packard). He has contributed immensely to the growth of Snapfish by gathering 100M users and $300M in revenue. Bala also volunteered for UIDAI under Mr. Nandan Nilekani in 2007. He started AngelPrime, an angel investment firm in 2011 (now Prime Venture Partners). While working with AngelPrime he helped shape companies like ZipDial (sold to Twitter), EZETap, Happay, etc.

Kunal Varma is a serial entrepreneur, who founded Whimsia Custom Works, a company for customized merchandise, and Aspirare, which designs learning programs and assessment solutions for job seekers and college graduates. Kunal along with Anuj Kacker also co-founded Tapstart, a job discovery platform.

Anuj Kacker, is the COO of MoneyTap. Anuj has experience in diverse fields courtesy of working with established brands such as Airtel, Reliance, and JWT. He co-founded Tapstart which grew to 300K users and turned profitable within two years. Anuj exited Tapstart in 2015 to join MoneyTap.

With a small office in Mumbai and the headquarters in Bengaluru, the Moneytap workforce at present comprises 30 people. This number, the founders believe, is likely to double by the end of 2019.

MoneyTap - The Idea And Launch

MoneyTap was founded keeping in mind the needs of the middle class. The salaried class is often constrained by monetary issues when it comes to satisfying needs. These needs can be anything like medical needs, school fee, or house rent.

The trio observed that just a minimal amount of credit could help the middle class take care of these needs easily. But extensive paperwork and formalities makes people apprehensive about taking loans unless it's a huge amount. Moreover, credit cards and personal loans are not very popular in India.

Besides, the middle class also finds it humiliating to borrow money from family and friends. MoneyTap was the solution to this conflation of issues.

The name MoneyTap was chosen because the app allows users to get money simply at the tap of the finger.

MoneyTap Logo

MoneyTap - Products And Services

The MoneyTap app, launched in partnership with the RBL Bank and several NBFCs, issues collateral-free credit up to a limit of Rs 5 Lakhs. The founders added that consumers can borrow anywhere between Rs 3,000 and Rs 5 Lakhs from the app and choose from among several repayment options with regards to time ranging from 2 to 36 months. MoneyTap and RBL also launched the RBL MoneyTap credit card. The card can be used like any other credit card for making online and offline payments. Users can also transfer money from the MoneyTap app to their bank accounts directly.

MoneyTap offers loans at an interest rate as low as 1.08% per month, and 13% to 18% per annum.

Consumers have to pay a one-time setup fee of Rs 499 along with taxes which is payable to the banking partner directly for blocking the credit-limit.

We are trying to get the middle-income group to use our application. For us, the sweet spot is someone who earns in the salary bracket of Rs 40,000 - 50,000 monthly. However, we also don’t mind it being lower.

The founders also add that the money gets replenished as soon the customers start paying their EMIs. For example, an amount of Rs 30,000 borrowed (out of the credit limit of Rs 5 Lakh) will get replenished as the person pays their installments over time, thus becoming available for borrowing in future. Further, on-boarding of customers happens through a chatbot interface wherein the system instantly connects to the banking system and the credit bureau to find out the credit history of the customer. The money then gets approved accordingly.

MoneyTap - Business And Revenue Model

MoneyTap adheres strong business fundamentals since money lending requires attention to detail. The way it makes money is through revenue share with banking partners. Every time a customer gets approved for access to a credit line for lifetime, a small fee of Rs 500 is charged. Once the customer spends some money over a period of one year, the money is recovered. Also, the usual interest paid by the customer along with the processing fees that is charged every time a person borrows also increases profitability.

MoneyTap is designed to be a product company running on the backbone of data science, technology, and product thinking. It is also focused on low-cost, tech-friendly solutions to pave way towards increased revenue.

MoneyTap - Customer Acquisition

MoneyTap was successful in building a large customer base within a short period of time. Within eight months of its inception, the company acquired 300,000 registered users from 14 cities in India.

MoneyTap acquires some of its customers organically. The company also markets its products through Google, social media, and content marketing.

According to Bala, there are a billion consumers in the country, and MoneyTap serves only 1% of them. He considers that even doubling this figure to 2% is a huge win.

MoneyTap - Funding

MoneyTap raised $12.3 million seed funding from Sequoia India, New Enterprise Associates, and Prime Venture partners in June 2017.

Date Stage Amount Investor
June 2017 Seed $12.3 million Sequoia India, New Enterprise Associates,Prime Venture partners

The funding, as stated by Bala, has strengthened the leadership position of the consumer lending firm by improving credit accessibility for other customer segments.

MoneyTap - Challenges

The most challenging thing in the consumer lending business is acquiring capital at low costs.  

Some of the major challenges faced by MoneyTap are:

  • Identifying trustworthy borrowers to whom credit can be disbursed without the fear of defaulting.
  • Maintaining strong relations with Banks and NBFCs.

MoneyTap - Competitors

Finomena is MoneyTap's #1 competitor. Finomena was founded in 2015 in New Delhi. Like MoneyTap, Finomena also operates in the consumer finance space.

PaySense and ZestMoney are other major rivals. Both of these companies, founded in 2015, function in the same segment. While PaySense is located in Mumbai, ZestMoney is located in Bangalore.

Lizzie Chapman, Co-founder and CEO, ZestMoney; Rajiv Raj, Co-founder and Director, CreditVidya and Bala Parthasarathy, Co-founder and CEO, MoneyTap

CreditVidya and New Delhi based Revfin also provide stiff competition.

MoneyTap - Achievements

MoneyTap has more than 5 Million downloads. However, this number isn't indicative of customers who hold a credit line, since the rejection rate from the pool of applicants can be as high as 60-70 percent. This high rejection rate is due to the rigorous checks done by the app's algorithms.

Almost 90 percent of MoneyTap's customers who have been issued credit lines are active and have drawn credit multiple times through the app. The average lending size of the company is Rs 30,000–35,000 and the average age of the customer is 28–30 years.

The company has presence across 4+ cities with the majority of its users coming from the top metros like Delhi-NCR, Bengaluru, Mumbai, and Chennai. MoneyTap also claims to have its non-performing assets well within the one percent mark.  

MoneyTap - Awards And Recognitions

MoneyTap was awarded the ‘Best Innovative Lending Product/Service’ in the Payment & Fintech category at the 8th India Digital Awards. The award show was organized by the Internet and Mobile Association of India (IAMAI). MoneyTap was also awarded the leading FinTech Company in the lending category at PICUP Fintech 2017.

MoneyTap - Acquisitions And Mergers

MoneyTap is not actively looking for acquisitions. Bala tells that MoneyTap might acquire companies sharing similar values.

MoneyTap - Partners

MoneyTap launched its product with RBL Bank, its first banking partner. With the help of RBL's Technology, MoneyTap was able to serve customers with quick decisions and quick access to money round the clock. Moreover, RBL Bank also provides a MoneyTap-RBL Credit Card with the credit line.

In 2017, MoneyTap announced partnership with Aditya Birla Finance Limited (ABFL). MoneyTap also has several other banks and NBFCs as partners.

MoneyTap - Future Plans

MoneyTap's future plans include:

  • Issuing credit lines worth Rs. 2,000 crore, across 100+ cities in India, by the end of this year.
  • Expanding services to 50 cities by the end of this year.
  • Building partnership with more banks.
  • Reaching out to groups having income as low as Rs 10000-15000.

Website - Visit MoneyTap

Author image

About Shubham Kumar

Founder @StartupTalky. IIT KGP grad. Learner. Dedicated to the service of the startup Ecosystem. Love meeting people. Let's connect - [email protected]
  • Bangalore