Pune-based FinTech startup EarlySalary, which offers Salary Advances and Instant Cash Loans, has raised its first debt financing of Rs 5Cr from IFMR Capital.
The company recently received its Series A round of $4 million (Rs.28Cr) equity funding in May this year from IDG Ventures India & DHFL, and plans to leverage its equity multiple times over the next few months.
The secured working capital will provide an impetus for further accelerating the company’s exciting growth plans. EarlySalary has already disbursed 7,000+ loans last month and plans to reach a target of around 30,000+ loan disbursements per month by end of this financial year.
Akshay Mehrotra, Co-Founder & CEO at EarlySalary commented, “EarlySalary is on a high growth trajectory, given the excellent response we have received, especially from young working millennials. Since lending is our main business, money is working capital for us. Getting access to debt for an early stage lending start-up is the key to success.”
Adding to this, Co-Founder & CFO Ashish Goyal said “We are confident of making our loan book stronger by disbursing 30,000+ loans per month by the end of this financial year. Looking at the current traction we are targeting to cross 1 Million downloads over the next month”.
Founded in 2015, EarlySalary focuses on providing instant cash and short-term loans to young working professionals in the country. The current product is a 30-day unsecured loan ranging in value from Rs 8,000 to Rs 1,00,000. The loans that EarlySalary offers are similar to salary/cash advances or credit card cash withdrawals. The FinTech startup charges an average of 2.7 percent on a monthly basis for the loans taken and claims to be cheaper than credit cards.
EarlySalary currently has operations in 8 cities including Mumbai, Pune, Chennai, Bangalore, Hyderabad, New Delhi, Jaipur and Ahmedabad, and is looking at expanding into other cities as well.
Dr. Kshama Fernandes, Chief Executive Officer, at IFMR Capital said, “Our strategy has always been to identify high potential companies at an early stage and support them by providing capital, customised structured product solutions and access to a wide spectrum of investors. This association with EarlySalary fits right into that philosophy. We believe they are pioneers in using technology to disrupt the current retail credit ecosystem, successfully impacting a large number of professionals who are not served by banks”.