EarlySalary, India’s fintech startup to offer salary advances and instant cash loans has raised its first round of debt financing of Rs 5 cr from IFMR Capital. Prior to this, In May 2017, the startup has announced its Series A funding of $4 Million from IDG Ventures India (IDGVI) and Dewan Housing Finance Corp Ltd (DHFL).
The current infused capital will help EarlySalary to accelerate its growth plans. The company has disbursed over 7,000 loans last month and plans to reach a target of 30,000 loan disbursements per month by the end of this financial year.
Commenting on the development, Kshama Fernandes, Chief Executive Officer, 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.”
EarlySalary was co-founded by Akshay Mehrotra and Ashish Goyal 18 months back and had raised Seed Funding from Ashok Agarwal of Transcorp International. Till date, the app has received 3,50,000+ downloads across its Android & iOS mobile app platform. The firm focuses on helping young working professionals get Instant Loans and Salary Advances in minutes and is fast becoming the first line of credit to young working Indians.
“Powered by digital score carding and robust social media underwriting systems, we have successfully disbursed 7000+ loans last month. 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 startup is the key to success,” said Akshay Mehrotra, CEO, EarlySalary.
Adding to this, Co-Founder and 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”.
The company has distributed 15,000+ loans to customers borrowing between Rs.8,000 to Rs.1,00,000 at a low cost of Rs.9 per Rs.10,000 per day. The company also partners with many large Corporates as well as SMEs across the country to give Salary Advances to employees.
More than 80% of its customer base is in their first career roles and most of them are new to credit and are first time borrowers. Over the past year, EarlySalary developed its Underwriting System which is a self-learning Algo Based Decisioning System. The System in real time reviews Social Media and Credit Bureau data of customers and helps approve the loan for them.
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.
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