Pune-based digital lending platform LoanTap Financial Technologies Pvt Ltd on Wednesday said it has bought healthcare-focussed fintech firm Unofin in an effort to ramp up its exposure in the healthcare financing space.
The financial details of the transaction were not disclosed.
Loantap, which counts Kae Capital, India Quotient, Lighthouse Canton, Avaana Capital, 3one4 capital and Tuscan ventures, among others as its investors, said that through this buyout it aims to offer affordable financing options for healthcare needs to individuals without any insurance coverage or those who may need more funds beyond insurance capping.
LoanTap further said that it plans to expand its reach in the rapidly growing healthcare sector in India by leveraging the fintech healthcare expertise of Unofin, which has already serviced over 12,000 customers with Rs 120 crore of gross loan disbursals so far.
Unofin has tie-ups with 1600 healthcare service providers in seven cities, including Delhi NCR, Jaipur and Chandigarh. Earlier, it had raised capital from LV Angel Fund, First Cheque, family offices and other HNI investors. It counts LoanTap, Faircent and Aditya Birla Capital as its lending partners.
LoanTap’s cofounder and chief executive officer Satyam Kumar said that the acquisition is a strategic move for the company to expand its product offerings and tap into the immense potential of the healthcare sector.
“We believe that healthcare financing is a niche segment with tremendous growth potential. Unofin's deep understanding of the industry will help us create innovative solutions that cater to the unique needs of healthcare professionals and institutions," Kumar added.
The acquisition will also enable LoanTap to leverage Unofin's strong relationships with leading hospitals, clinics, and medical equipment suppliers to offer customized financing solutions to these entities. It plans to introduce a range of products such as equipment financing, working capital loans, and term loans to healthcare professionals and institutions, the statement said.
LoanTap was founded by Satyam Kumar and Vikas Kumar in 2016. The non-bank financial institution (NBFC) offers loans and overdraft products to salaried professionals with earnings of Rs 30,000 and above. It also offers credit to lenders, anchors, and merchants. It has raised close to Rs 170 crore in equity and Rs 23.8 crore in venture debt so far.
The platform pits against the likes of PaySense and EarlySalary.
LoanTap’s acquisition of Unofin comes at a time when the digital lending space is witnessing a slew of consolidations as raising fresh capital gets tougher with the uncertain macroeconomic conditions.
For instance, last month, Mumbai-based Lendingkart acquired retail lender Upwards Fintech to offer personal loans to small businesses. Also, in November, Tiger Global-backed fintech unicorn Cred bought lending-based big data company CreditVidya in a cash and stock deal. The same month also saw Walmart-backed digital payments and financial services provider PhonePe acquiring buy-now-pay-later (BNPL) fintech startup ZestMoney.
