FinTech Start-up EarlySalary Raises Rs. 100 Crores as Series B funding from Eight Roads Venture
Pune, 4th January, 2018: EarlySalary, India’s first FinTech startup to offer Salary Advances and Instant Cash Loans, has announced its Series B funding of Rs. 100 Crores led by Eight Roads Ventures India. Existing investors IDG Ventures India, Dewan Housing Finance Corp. Ltd. (DHFL) and seed investor Mr. Ashok Agarwal also participated in the round.
The companywill be deploying these funds to accelerate its growth plans and target 100,000loan disbursements per month by the end of 2018. The venture hasdisrupted the way young Indians are borrowing, replacing borrowing fromfriends, family and employers with borrowing real-time through a Mobile Appfrom the comfort and convenience of their homes, and seeing money credited totheir bank accounts instantly. The company has, for the first time, providedaccess to short term loans to young working professionals even without a creditbureau rating, using social media surrogates for risk assessment and machinelearning scorecards for faster loans approvals.
Speaking on this occasion, Akshay Mehrotra,Co-Founder & CEO Early Salary said, “We are very excited to have EightRoads Ventures India join our board. We seeourselves as a first line of credit for the young working India. We have threeclear focus areas to work towards. Firstly, to further improve our technologystack and work on further investing in machine learning systems for better,faster and more prudent risk management. Secondly, to focus on buildingadditional products and tenure options to help our customers across theirvaried cash needs. And thirdly, to leverage this better technology and broaderproduct portfolio to grow our monthly volume to 100,000 disbursements by end of2018.”
He further added, “The key to our success will behelping more and more people without any human interface. As we scale this, itwill be our clear differentiator.”
Ashish Goyal, Co-Founder and CFO said, “What sets EarlySalary apart is itsunique product proposition and its ability to provide customer experience usingmachine underwriting systems. Our relentless efforts aim to achieve a finebalance between customer experience, risk management and service millennials ina new way. With this additional capital, we are confident in expanding ourability to reach to more customers and have a stronger lending book to supportour growth.”
Earlier in May 2017, EarlySalary had raised $4Million (Rs. 27 crore) from IDG Ventures India and DHFL. In the last 7months, EarlySalary received more than 1 million new app downloads and isalready working with more than 100 large employers and partners to provideinstant salary advances and short terms loans to young working professionalsthrough the EarlySalary mobile app.
As a part ofthis transaction, Dhyanesh Shah, Principal at Eight RoadsVentures, will join the board of EarlySalary. He said, “The financialservices market in India is ripe for disruption, and we have been activelylooking for differentiated opportunities. EarlySalary has stood out for itsunique consumer proposition and exceptional management team. The company hascleverly leveraged data and technology to provide instant affordable loans toan otherwise excluded customer segment. We look forward to working closely withAkshay, Ashish and the management team at EarlySalary.”
Mr. Ashok Agarwal, Director of TranscorpInternational Limited commented, “We believed inEarlySalary from day one and we are very excited to see it grow manifold. TheCompany has demonstrated capabilities to leverage path-breaking technologies tooptimize consumer convenience. We are confident that this round of funding willbe utilized to scale the business & take the company to the next level.”
Harshil Mehta, JMD & CEO, DHFLcommented, “EarlySalary has been growing at the desired pace and has scaledup the business well. As digital solutions make our lives much moreconvenient, innovations in customer service will be at the core of businessgrowth. As a fintech enterprise, EarlySalary continues to bring innovativesolutions in the lending space by addressing a very relevant consumer need.This is backed by data analytics, consumer insights and strong technologybackbone. We continue to look forward to supporting the talented team asthey work towards expanding the business.”
KarthikPrabhakhar, Director & Head of Fundraising at IDG Ventures India added, “Over the last twoyears, EarlySalary has emerged as one of the fast-growing fintech players inthe country with its cutting-edge technology platform, and is now amongst themarket leaders in the real-time short-term loan business. We strongly believethat FinTech will pave the way for the younger generation to get access toquality credit and EarlySalary will lead the way”.