EarlySalary, a fin-tech 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 of the company — IDG Ventures India, Dewan Housing Finance Corp. Ltd. (DHFL) and seed investor Mr. Ashok Agarwal also participated in the round.
The company will be deploying these funds to accelerate its growth plans and target 100,000 loan disbursements per month by the end of 2018. The venture has disrupted the way young Indians are borrowing, replacing borrowing from friends, family and employers with borrowing real-time through a Mobile App from the comfort and convenience of their homes, and seeing money credited to their bank accounts instantly.
The company has, for the first time, provided access to short-term loans to young working professionals even without a credit bureau rating, using social media surrogates for risk assessment and machine learning scorecards for faster loans approvals.
Commenting on this, Akshay Mehrotra, Co-Founder & CEO Early Salary said,
We are very excited to have Eight Roads Ventures India join our board. We see ourselves as the first line of credit for young working India. 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.
Earlier in May 2017, EarlySalary had raised $4 million from IDG Ventures India and DHFL. In the last 7 months, EarlySalary received more than 1 million new app downloads and is already working with more than 100 large employers and partners to provide instant salary advances and short terms loans to young working professionals through the EarlySalary mobile app.
As a part of this transaction, Dhyanesh Shah, Principal at Eight Roads Ventures, will join the board of EarlySalary. He said:
The financial services market in India is ripe for disruption, and we have been actively looking for differentiated opportunities. EarlySalary has stood out for its unique consumer proposition and exceptional management team. The company has cleverly leveraged data and technology to provide instant affordable loans to an otherwise excluded customer segment. We look forward to working closely with Akshay, Ashish and the management team at EarlySalary.
Founded by Akshay Mehrotra and Ashish Goyal, EarlySalary is a mobile app which allows salaried individuals to avail instant loans for an average tenure of 30 days or till the next salary cycle. These loans are similar to salary advances or credit card cash withdrawals, empowering consumers with ready cash when it is most needed.