OpenTap, a fintech firm that enables peer-to-peer lending for middle and low income borrowers, aims to facilitate ₹100 crore in short term loans by the end of 2018.
“The journey started some 24 months ago and in the trial period leading up to December 2016, we lent ₹30 lakh,” said CEO Senthil Natarajan. “Our goal is to scale up our business to touch ₹100 crore by December 2018.”
The Chennai-based fintech firm provides alternate financial services to blue-collared workers, which is two times of net salary. As on date, it has provided credit worth ₹3 crore to 1,200 borrowers.
Asked about the firm’s goal, he said: “We can easily achieve it mainly through customer acquisition. It is about ₹8 crore per month.
“We might miss the number, but still we will be on the right track.”
“India is huge country with unbanked population. The opportunity is huge. We fill the gap between the organised money lender and banks. We provide loans on lower 20% declining balance rate. Banks do not give term loans for less than a year and that’s where we step in,” he said.
According to him, OpenTap act as an intermediary between the lender and borrower. It has tied-up with Trichy Rockcity Benefit Fund Ltd., which does the funding. “Going forward, we are planning to tie-up with two or three financial institutions to achieve the scale,” he said.
“Currently, OpenTap has only one product – short term funding – and this would continue till December 2018. We might add a few more products such as insurance and saving account later,” he said.
Mr. Natarajan said most of them borrowed money to meet education loans, gold loans, vehicle loans, pay medical bills, modifying home or to close other loans.
“Currently, we have sufficient funds to manage our business. We might need funds after December 2018. But, it will be for automation. ,” he said.
