This startup story has all the hallmarks of success: steady financial backing, experienced team members, innovative products, and passionate customers who love their service. But what sets MoneyTap apart from others? Their commitment to social responsibility. They know that not everyone has access to traditional banking services, and they want to change that.
MoneyTap: A Quick Glance
MoneyTap offers personal loans of between INR 5 lakhs (around $7,200) and INR 20 lakhs (around $28,000) to clients, which can be used for various purposes. The company claims that most people use the money to consolidate their existing debt, such as credit card bills and loans.
The goal of the platform is to make borrowing money as simple as sending a text message. People can access their accounts with just one click from their smartphones without any major complications common with traditional financial institutions.
With its automated credit assessment algorithm, MoneyTap offers individuals and companies easy access to liquidity through digital currencies without the need for any collateral.
It also offers competitive interest rates and repayment plans with no hidden fees or penalties. In short, it’s everything you need in an online lender.
Founding Members of Money Tap
Bala Parthasarathy
MoneyTap CEO Bala Parthasarathy is the co-founder of multiple startups in Silicon Valley. He was instrumental to Snapfish’s (now acquired by HP) growth by gathering 100M users and generating $300 million in revenue.
In addition, he also volunteered for UIDAI under Mr Nandan Nilekani during 2007 when it started its program called “Aadhaar”.
One such contribution that garnered him recognition, as an entrepreneur, among other successes, is AngelPrime. Here, he helped shape companies like ZipDial and EZETAP, which Twitter later acquired.
Kunal Verma
Serial entrepreneur and founder of two successful businesses, Kunal Varma, established Whimsia Custom Works to fill a need for customizable merchandise.
After successfully launching the company with his partner Anuj, they launched Aspirare. The purpose of this venture was to help students by learning programs that assess skills needed on-the-job or at the university level.
Anuj Kacker
Anuj Kacker is the COO of MoneyTap. He has experience in diverse fields due to his work with established brands, such as Airtel, Reliance and JWT.
He is also renowned for starting Tapstart, which grew from 300K users within two years before joining MoneyTap. He is an expert in providing sound advice on best practices for financial technology startups
The Idea Behind MoneyTap
Money Tap was created to eliminate the shame and humiliation associated with borrowing money.The founders of this company wanted to solve the problem they faced when looking for a loan – most companies had high-interest rates, high penalties for late-payments and long application processes.
They wanted to create something that would be faster and more convenient than the existing options. Thus, MoneyTap was created: a mobile-first lending platform that offers loans with lower interest rates and smaller penalties than other lenders.
Facing Challenges
One of the key challenges faced by MoneyTap was getting people to trust them and their credit rating system, which like most other countries, uses a rating system called CIBIL (short for Credit Information Bureau India Ltd). This rating system is only available to Indian citizens above 18 years old. But even from this pool of candidates, they still have to make sure that they are financially stable and have enough money to pay back the loan.
Finance is one of the most closely-held sectors in India, with many people being risk-averse. Regulations are being slowly eased but still largely remain unchanged. This makes it difficult for new companies to operate in this space since people still aren’t comfortable with the concept of online digital lending.
One of the biggest challenges was building trust with consumers. While online businesses do not require you to have a physical branch, people usually prefer offline modes for financial transactions. This makes it particularly difficult for MoneyTap to gain consumer trust for their services.
Overcoming Challenges
To counter the challenges that MoneyTap faces, they are trying to innovate in many ways. The company has created an app that allows you to apply for loans and make bill payments. It also allows borrowers to repay loans via various modes, such as NEFT and UPI.
MoneyTap is also trying to simplify the loan process by linking only your bank account with MoneyTap. Without the need for any additional documents, such as KYC (Know Your Customer) documents, this streamlines the entire loaning process.
They have also lowered interest rates on loans up to 1% to gain more users and customers.
Partnerships
RBL Bank, an innovative financial institution in India, has partnered with MoneyTap to bring the latest fintech services for customers. The partnership between RBL’s Technology and MoneyTap is a win-win situation that will benefit both parties involved.
In 2017, MoneyTap announced a partnership with Aditya Birla Finance Limited (ABFL). Since then, they have been able to bring their innovative ATM network into more than 15 cities across India.
In 2020, MoneyTap announced its partnership with Pawtect to offer insurance policies to their employees.
Awards And Recognition
MoneyTap has been appropriately honored for its innovative products and services. The company was awarded with two prestigious prizes for ‘Best Innovative Lending Product/Service’ and ‘Leading Fintech Company’ at the PICUP FinTech 2017 Conference.
Future Plans For The Company
- MoneyTap is looking to expand its reach in India, as well as South East Asia. The company hopes for even greater demand from consumers who want easy access to funds on demand.
- The company is currently worth 1000 crores and aims to be twice as large by 2022.
- MoneyTap received an NBFC license in September 2019 and plans to launch its own company soon. The company goal is that by 2022, it will have helped hundreds of small businesses with their loans.
- The company is looking to target customers aged 29-31, with average incomes of INR 30k – 40k. They plan on expanding their reach into lower income brackets soon, though.
Final Thoughts
The startup story of MoneyTap is a great example of what can happen when people with the right skills and knowledge come together to create an innovative product. It’s also proof that India has everything it needs for successful startups, including hard-working entrepreneurs willing to take risks to change their country for the better. You don’t need a lot of money or connections to be able to start something amazing; you just need passion and perseverance.
In 2016, a team of engineers from Silicon Valley set out to change the way people around the world accessed credit. The result was MoneyTap.
This startup story has all the hallmarks of success: steady financial backing, experienced team members, innovative products, and passionate customers who love their service. But what sets MoneyTap apart from others? Their commitment to social responsibility. They know that not everyone has access to traditional banking services, and they want to change that.
MoneyTap: A Quick Glance
MoneyTap offers personal loans of between INR 5 lakhs (around $7,200) and INR 20 lakhs (around $28,000) to clients, which can be used for various purposes. The company claims that most people use the money to consolidate their existing debt, such as credit card bills and loans.
The goal of the platform is to make borrowing money as simple as sending a text message. People can access their accounts with just one click from their smartphones without any major complications common with traditional financial institutions.
With its automated credit assessment algorithm, MoneyTap offers individuals and companies easy access to liquidity through digital currencies without the need for any collateral.
It also offers competitive interest rates and repayment plans with no hidden fees or penalties. In short, it’s everything you need in an online lender.
Founding Members of Money Tap
Bala Parthasarathy
MoneyTap CEO Bala Parthasarathy is the co-founder of multiple startups in Silicon Valley. He was instrumental to Snapfish’s (now acquired by HP) growth by gathering 100M users and generating $300 million in revenue.
In addition, he also volunteered for UIDAI under Mr Nandan Nilekani during 2007 when it started its program called “Aadhaar”.
One such contribution that garnered him recognition, as an entrepreneur, among other successes, is AngelPrime. Here, he helped shape companies like ZipDial and EZETAP, which Twitter later acquired.
Kunal Verma
Serial entrepreneur and founder of two successful businesses, Kunal Varma, established Whimsia Custom Works to fill a need for customizable merchandise.
After successfully launching the company with his partner Anuj, they launched Aspirare. The purpose of this venture was to help students by learning programs that assess skills needed on-the-job or at the university level.
Anuj Kacker
Anuj Kacker is the COO of MoneyTap. He has experience in diverse fields due to his work with established brands, such as Airtel, Reliance and JWT.
He is also renowned for starting Tapstart, which grew from 300K users within two years before joining MoneyTap. He is an expert in providing sound advice on best practices for financial technology startups
The Idea Behind MoneyTap
Money Tap was created to eliminate the shame and humiliation associated with borrowing money.The founders of this company wanted to solve the problem they faced when looking for a loan – most companies had high-interest rates, high penalties for late-payments and long application processes.
They wanted to create something that would be faster and more convenient than the existing options. Thus, MoneyTap was created: a mobile-first lending platform that offers loans with lower interest rates and smaller penalties than other lenders.
Facing Challenges
One of the key challenges faced by MoneyTap was getting people to trust them and their credit rating system, which like most other countries, uses a rating system called CIBIL (short for Credit Information Bureau India Ltd). This rating system is only available to Indian citizens above 18 years old. But even from this pool of candidates, they still have to make sure that they are financially stable and have enough money to pay back the loan.
Finance is one of the most closely-held sectors in India, with many people being risk-averse. Regulations are being slowly eased but still largely remain unchanged. This makes it difficult for new companies to operate in this space since people still aren’t comfortable with the concept of online digital lending.
One of the biggest challenges was building trust with consumers. While online businesses do not require you to have a physical branch, people usually prefer offline modes for financial transactions. This makes it particularly difficult for MoneyTap to gain consumer trust for their services.
Overcoming Challenges
To counter the challenges that MoneyTap faces, they are trying to innovate in many ways. The company has created an app that allows you to apply for loans and make bill payments. It also allows borrowers to repay loans via various modes, such as NEFT and UPI.
MoneyTap is also trying to simplify the loan process by linking only your bank account with MoneyTap. Without the need for any additional documents, such as KYC (Know Your Customer) documents, this streamlines the entire loaning process.
They have also lowered interest rates on loans up to 1% to gain more users and customers.
Partnerships
RBL Bank, an innovative financial institution in India, has partnered with MoneyTap to bring the latest fintech services for customers. The partnership between RBL’s Technology and MoneyTap is a win-win situation that will benefit both parties involved.
In 2017, MoneyTap announced a partnership with Aditya Birla Finance Limited (ABFL). Since then, they have been able to bring their innovative ATM network into more than 15 cities across India.
In 2020, MoneyTap announced its partnership with Pawtect to offer insurance policies to their employees.
Awards And Recognition
MoneyTap has been appropriately honored for its innovative products and services. The company was awarded with two prestigious prizes for ‘Best Innovative Lending Product/Service’ and ‘Leading Fintech Company’ at the PICUP FinTech 2017 Conference.
Future Plans For The Company
- MoneyTap is looking to expand its reach in India, as well as South East Asia. The company hopes for even greater demand from consumers who want easy access to funds on demand.
- The company is currently worth 1000 crores and aims to be twice as large by 2022.
- MoneyTap received an NBFC license in September 2019 and plans to launch its own company soon. The company goal is that by 2022, it will have helped hundreds of small businesses with their loans.
- The company is looking to target customers aged 29-31, with average incomes of INR 30k – 40k. They plan on expanding their reach into lower income brackets soon, though.
Final Thoughts
The startup story of MoneyTap is a great example of what can happen when people with the right skills and knowledge come together to create an innovative product. It’s also proof that India has everything it needs for successful startups, including hard-working entrepreneurs willing to take risks to change their country for the better. You don’t need a lot of money or connections to be able to start something amazing; you just need passion and perseverance.
