MSME lender LoanTap has closed a Rs 74 crore pre-Series C funding round, which includes Rs 54 crore in equity led by July Ventures. 

The equity round also saw participation from existing investors such as 3one4 Capital, Avaana Capital, Kae Capital, and the Swapurna Family Office, a long-time backer since inception. 

Additionally, Rs 20 crore is closed through venture debt to facilitate the expansion of its supply chain financing offerings for small retailers.

LoanTap offers supply chain financing for distributor-led, small retailer ecosystems, particularly in essential segments like groceries and pharmacies. India’s MSME credit gap is estimated at approximately Rs 33.2 lakh crore, reflecting a massive, underserved opportunity. 

With an acquisition of more than 50,000 retailers over the last 24 months, LoanTap has financed over 4.5 lakh invoices with disbursals over Rs 1000 crores to small retailers. The NBFC aims to reach over 2 lakh retailers and fund a million invoices with an average ticket size of Rs 8000 to Rs 15,000 over the next 12 months. 

Satyam Kumar, CEO and co-founder, LoanTap, said, “India’s MSME sector is undergoing a massive transformation, and we plan to use this momentum to double down on invoice financing, an area we see as a powerful enabler for MSME growth across India. BICRI also enables distributors to evaluate and extend business and trade credit to retailers. Together, with these two engines, capital access and credit preparedness we plan to drive the next phase of MSME empowerment.”