EarlySalary, India’s first FinTech startup to offer Salary Advances and Instant Cash Loans has announced its first debt financing of Rs 5Cr from IFMR Capital. This working capital infusion will provide an impetus for further accelerating the company’s exciting growth plans. EarlySalary has already disbursed 7,000+ loans last month and plans to reach a target of around 30,000+ loan disbursements per month by end of this financial year.
The company recently received its Series A round of $4 million (Rs.28Cr) equity funding in May of this year from IDG Ventures India & DHFL, and plans to leverage its equity multiple times over the next few months. EarlySalary currently has operations in 8 cities including Mumbai, Pune, Chennai, Bangalore, Hyderabad, New Delhi, Jaipur and Ahmedabad, and is looking at expanding into other cities as well.
Akshay Mehrotra, Co-Founder & CEO at EarlySalary commented, “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. Since lending is our main business, money is working capital for us. Getting access to debt for an early stage lending start-up is the key to success. And IFMR becoming our 1st debt provider we feel more confident and hope to leverage multiple times on our current equity base and build a strong and large lending book.”
Adding to this, Co-Founder & CFO Ashish Goyal said “We are confident of making our loan book stronger by disbursing 30,000+ loans per month by the end of this financial year. Looking at the current traction we are targeting to cross 1 Million downloads over the next month”.
Dr. Kshama Fernandes, Chief Executive Officer, at 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”.