Capital Raised to fuel supply chain financing growth; LT Credit has cemented its position as a category leader in supply chain financing for distributor-led, small retailer ecosystems, particularly in essential segments like groceries and pharmacies.
FinTech BizNews Service
Mumbai, June 5, 2025: LoanTap has successfully closed a Rs74 crore pre-Series C funding round, comprising Rs54 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, Rs20 crore is closed through venture debt to facilitate the expansion of its supply chain financing offerings for small retailers.
LT Credit has cemented its position as a category leader in 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 Rs33.2 lakh crore, reflecting a massive, underserved opportunity. The rise of digital infrastructure driven by initiatives such as UPI, the Udyam portal, the Account Aggregator framework, and B2B e-commerce platforms has accelerated the formalization of over 25 million MSMEs. LT Credit is addressing the credit gap through its proprietary credit assessment engine, BICRI (Business Indicator for Credit Ratings in India).
BICRI is a proprietary tool that offers retailers a transparent, data-driven view of their creditworthiness and enables lenders with an alternate risk-assessment for extension of credit to the retailer,s empowering small businesses and driving inclusive growth. It seamlessly integrates with B2B e-commerce platforms, enabling distributors to set and scale limits for small retailers with credit.
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 Rs1000 crores to small retailers. LoanTap 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.
Mr Satyam Kumar, CEO & 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.”
A Spokesperson at July Ventures said, “At July Ventures, we believe in backing scalable digital platforms that are category-defining. LoanTap’s sharp focus on technology-led, embedded credit for MSMEs aligns perfectly with our thesis. Their ability to combine deep retail ecosystem understanding with a data-led credit engine like BICRI positions them uniquely fill in the staggering 33.2 lakh crore MSME credit gap. We're excited to partner with them and the co-investors on this next phase of growth."
