FinTech consumer lender EarlySalary raised $110 million in a Series D funding round, the largest amount the startup raised since it was founded in Pune, India in 2015.
The round was led by TPG’s The Rise Fund and Norwest Venture Partners, with participation by existing investor Piramal Capital & Housing Finance Limited. EarlySalary raised $34 million in 2019 backed by Eight Roads, Chiratae Ventures, Piramal Capital & Housing Finance Limited, and angel investors, according to a press release on Tuesday (Aug. 30).
EarlySalary provides accessible financial lending solutions of up to Rs. 5 lakhs to working professionals and also offers buy now pay later (BNPL) services “with a clear focus on education, health and consumer product financing,” per the statement.
The company also focuses on providing an affordable credit platform to underserved populations, primarily in India’s Tier 3 and 4 cities.
The fresh capital will be used for business expansion over the next 24 months. The startup currently operates in over 150 cities with approximately 1 million customers. Its app has been downloaded an estimated 12 million times.
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“We believe in a customer-first approach to providing credit to young middle-income Indians and we are thankful for the trust millions of Indians have put in us. As our customers’ aspirations and credit needs grow, we will focus to continue to retain their trust and grow with them,” said Akshay Mehrotra, co-founder and CEO.
“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,” Mehrotra added.
The Series D round included a secondary sale, according to the release. Unitus Capital was the exclusive advisor for the transaction.
“EarlySalary’s core purpose is to enable financial services access to its core segments. This capital raise enables us to grow and meet our customer aspirations. We believe that we will be able to add significant value to the fintech ecosystem,” said Ashish Goyal, co-founder and CFO.