LoanTap Raises ₹74 Cr to Boost MSME Supply Chain Financing

In a country where over 63 million MSMEs (Micro, Small and Medium Enterprises) form the economic backbone but struggle daily with access to timely and fair credit, one fintech startup is steadily changing the game. LoanTap, a Pune-based digital lending platform, has announced a significant ₹74 crore pre-Series C capital infusion that will power its mission of bridging the credit gap for India’s underserved small retailers — and not just with capital, but with technology that speaks their language.

Fueling the Growth Engine

The fresh round includes ₹54 crore in equity, led by July Ventures — known for backing disruptive digital-first ventures. Also joining the round are seasoned early supporters 3one4 Capital, Avaana Capital, Kae Capital, and the Swapurna Family Office. An additional ₹20 crore in venture debt has also been secured, earmarked specifically for scaling up supply chain financing.

But this isn’t just about funding. It’s about enabling lakhs of small businesses that form the invisible engine of India’s economy — from kirana store owners and local chemists to distributors of essential goods — to access credit in a way that makes sense to them.

Why It Matters: The ₹33.2 Lakh Crore Problem

India's MSMEs, despite their immense contribution to GDP and employment, face a staggering credit gap of approximately ₹33.2 lakh crore. Traditional banks often avoid lending to these businesses due to lack of documentation, rigid underwriting models, and the absence of formal financial history.

But change is in the air. Thanks to IndiaStack innovations such as UPI, the Udyam registration portal, the Account Aggregator (AA) framework, and the rise of B2B e-commerce platforms, more than 25 million MSMEs are now stepping into the formal economy.

LoanTap, through its NBFC arm LT Credit, is harnessing this momentum.

Enter BICRI: LoanTap’s Secret Weapon

At the core of LoanTap’s strategy lies BICRI — Business Indicator for Credit Ratings in India — a proprietary, tech-driven engine that assesses the creditworthiness of retailers using real-time business indicators instead of conventional paperwork-heavy methods.

“BICRI provides a transparent and data-backed view of a retailer’s credit profile,” says Satyam Kumar, CEO and Co-founder of LoanTap. “More importantly, it empowers distributors and retailers alike. Distributors can now extend and manage credit limits digitally, and retailers gain access to financing that actually works for their needs.”

Boots on the Ground: 50,000 Retailers and Counting

Over the last two years, LoanTap has already brought over 50,000 retailers into its credit ecosystem and facilitated the financing of more than 4.5 lakh invoices, amounting to disbursals of over ₹1,000 crore.

This is not just a fintech success story — it’s a story of empowerment at scale.

From financing grocery stock for a neighbourhood kirana store in Nashik to enabling a local medical store in Kanpur to serve its community better, LoanTap’s supply chain financing is quietly rewriting the rules of MSME lending in India.

And this is just the beginning. With the fresh capital, the company plans to reach 2 lakh retailers and fund 1 million invoices over the next year, with an average invoice size between ₹8,000 to ₹15,000.

Backers See Big Potential

The confidence from investors is clear.

“At July Ventures, we back scalable, category-defining platforms,” said a spokesperson from July Ventures. “LoanTap’s technology-first approach to MSME credit, particularly through embedded finance models and a data-led engine like BICRI, makes them a standout player in the space. We’re excited to be part of this journey.”

Their optimism isn’t unfounded. The convergence of digital infrastructure, government-led formalization, and real-time data has created fertile ground for solutions like LoanTap to thrive.

India’s credit landscape is transforming — and in that change lies an opportunity to democratize financial access for millions.

As LoanTap doubles down on invoice financing and expands its retail footprint, it is aiming to solve not just a credit challenge, but a deep-rooted systemic issue: making credit inclusive, contextual, and intelligent.

In the words of Satyam Kumar, “India’s MSME sector is undergoing a massive transformation. With access to capital and tools like BICRI that prepare retailers for credit, we’re not just funding businesses — we’re unlocking potential.”

And that’s a story worth following.