EarlySalary, a fin-tech startup that offers salary advances and cash loans, has announced that it has raised its first round of debt financing of ₹5 cr from IFMR Capital.
Prior to this, the company has raised Series A round of ₹28 crore equity funding in May this year from IDG Ventures India and DHFL. It is planning to leverage its equity multiple times over the next few months.
The newly raised funding will be used by the company to help it accelerate its growth plans. The company says that it 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 this, Akshay Mehrotra, CEO, EarlySalary, said,
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.
Kshama Fernandes, Chief Executive Officer, IFMR Capital said,
IFMR Capital is excited to partner EarlySalary in its ambitious journey of transforming the financial landscape for salaried professionals. 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, founded in 2015, is a salary advance mobile application that enables Indian users to borrow money for urgent cash requirements before they get their monthly wages. It aims to help individuals who face month-end and mid-month financial crisis by providing small loans until they receive their salaries.
The company currently has operations in 8 cities including Mumbai, Pune, Chennai, Bangalore, Hyderabad, New Delhi, Jaipur and Ahmedabad. It is now looking at expanding into other cities in India as well.