Digital lending startup EarlySalary raises $110M in a Series D round

Pune-based EarlySalary, a fintech startup that offers instant cash loans and salary advances, has raised $110 million in a Series D funding round at a valuation of $300 million.

The Series D round, which also includes a secondary sale, was led by TPG’s The Rise Fund and Norwest Venture Partners, with participation from existing backers Piramal Capital and Housing Finance Limited.

Prior to the current round, the fintech startup had raised Rs 75 crore in October 2020 as part of its series C round from Eight Roads Ventures and Chiratae Ventures. It has round raised $144 million in funding to date.

EarlySalary was founded in 2015 by Akshay Mehrotra and Ashish Goyal, The startup provides instant loans of up to Rs 5 lakh to salaried individuals earning between Rs 1.5 lakh and Rs 10 lakh per annum. Its product portfolio includes instant loans, personal loans, BNPL, and SalaryCard.

According to the company's statement, It will use the raised capital to accelerate its loan book, increase its presence to 150 cities, hire more talent for senior management functions, and grow the scope of its buy-now-pay-later (BNPL) business.

EarlySalary said it increased its customer base to 1 million customers, with 12 million downloads on its application. Slice, ZestMoney, LoanTap, PaySense, MoneyTap, and IndiaLends, are some of its top competitors.

"As our customers’ aspirations and credit needs grow, we will focus to continue to retain their trust and grow with them. The funding will not only help us in expanding our cash business but also build an array of capabilities to efficiently serve a larger segment of customers. We are confident in our ability to keep innovating and achieving 10x large growth in our customer base," said Akshay Mehrotra.

Commenting on the funding, Akshay Tanna, Partner at TPG, said, "Through its innovative platform, EarlySalary delivers a critical financial service to the growing, yet underserved, middle-income segment in India. By providing modest, short-duration loans at competitive rates, EarlySalary is improving the financial health of its customer base and empowering them to finance things like upskilling courses, healthcare needs, personal emergencies, and short-term cash-flow mismatches."

"Akshay and Ashish have built a world-class team and a market-leading product that is poised to continue to meet the needs of India’s rising middle class and we are delighted to be a part of its next chapter of growth," Akshay said.

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