EarlySalary Raises $110M in Series D

NEW DELHI : Social Value Technologies Pvt. Ltd, operator of online lending platform EarlySalary, raised $110 million (approx. 879 crore) in a Series D funding round co-led by TPG’s The Rise Fund and Norwest Venture Partners, with participation from Piramal Capital, a senior company executive said.

The new funds will be used to enter new markets, strengthen leadership positions and improve skills, said Akshay Mehrotra, CEO and co-founder of EarlySalary, in an interview.

The startup also plans to go public within the next four to five years, he added.

EarlySalary had last increased 75 crores in 2020 in a Series C round led by Eight Roads Ventures and Chiratae Ventures. Before that, he had raised 100 crores in a Series B round led by Eight Roads Ventures India in 2018. Existing investors IDG Ventures India, Dewan Housing Finance Corp Ltd and seed investor Ashok Agarwal also participated in the round.

“By providing short-term loans at competitive rates, EarlySalary makes it possible to fund things ranging from refresher courses to short-term cash flow mismatches,” said Akshay Tanna, partner at TPG.

“Digital lending is emerging in India and we believe EarlySalary is well positioned to meet the credit needs of millions of underserved but ambitious Indians,” said Niren Shah, Managing Director of Norwest Venture Partners.

Founded by Mehrotra and Ashish Goyal in 2015, EarlySalary offers a mobile application that allows employees to benefit from instant loans for an average term of 30 days or until the next salary cycle. Users can avail the loans in the form of payday advances or credit card cash withdrawals. The company claims to have over 10 million app downloads, with 80% of users being repeat customers. It is present in 150 cities and plans to add 100,000 new users every month.

In 2018, the Pune-based company, which competes with LoanTap and PaySense, acquired CashCare, a Mumbai-based credit union startup for an undisclosed amount. In February this year, it entered the buy now, pay later (BNPL) healthcare segment.

“Growth is our concern and in two years, we seek to achieve 200 crore profit after tax (PAT),” Mehrotra said.

He claimed that EarlySalary had disbursed 2.8 million loans worth 7,500 crores within six years of launching the mobile app.

Globally, digital lending has also attracted strong investor interest with record funding of $21 billion last year, a 90% increase from 2020, according to investment tracker CB Insights. private. Cheap internet plans and the proliferation of online payments have given a boost to India’s fintech industry, leading to an increase in the number of startups offering instant loans through a mobile app.

Catch all the company news and updates on Live Mint. Download the Mint News app to get daily market updates and live trade news.

More less

To subscribe to Mint Bulletins

* Enter a valid email

* Thank you for subscribing to our newsletter.

Comments are closed.