Pune-based lending startup EarlySalary, which offers salary advances and instant cash loans, has raised Rs 100 crore in a series B round of funding led by Eight Road Ventures. The round also saw participation from its existing investors including IDG Ventures India and Dewan Housing Finance Corp. Ltd. (DHFL).
As part of the investment, Dhyanesh Shah, principal at Eight Roads Ventures, will join the board of EarlySalary.
Founded in 2015 by Akshay Mehrotra and Ashish, EarlySalary focuses on providing instant cash and short-term loans to young working professionals in the country. The startup partners with small, medium and large companies to give salary advances to employees. The FinTech startup charges an average of 2 percent on a monthly basis for the loans taken and claims to be cheaper than credit cards.
With the newly raised capital, EarlySalary plans to launch a line of credit product for its customers and scale up business to target 1 lakh loans to be disbursed per month. Initially operating in eight metros, EarlySalary is now catering to working professionals in 15 cities across India.
In September 2017, EarlySalary raised its first round of debt financing of Rs 5 crore from IFMR Capital, which has invested in company’s exciting growth plans.
In the last seven months, the company claims to have received more than 1 million new app downloads.
“We have three clear focus areas to work towards. Firstly, to further improve our technology stack and work on further investing in machine learning systems for better, faster and more prudent risk management. Secondly, to focus on building additional products and tenure options to help our customers across their varied cash needs. And thirdly, to leverage this better technology and broader product portfolio to grow our monthly volume to 100,000 disbursements by end of 2018,” said Akshay Mehrotra, co-founder and CEO Early Salary.
The company competes with other startups in the small ticket loans space such as Capital Float, Lending Kart, LoanTap, MoneyTap, BillionLoans besides others.
Earlier in May 2017, EarlySalary had raised Rs 27 crore from IDG Ventures India and DHFL.