EarlySalary Raises Series D Funding of USD 110 Million Led by TPG’s The Rise Fund and Norwest Venture Partners

• Expands money loans business to over 150 cities
• Adds a number of senior management positions over the past 6 months
• Aims to deepen the monetary ecosystem for younger and aspirational Indians by its platform

India’s largest client lending fintech, EarlySalary, has closed its sequence D funding spherical of $110 million led by TPG’s The Rise Fund and Norwest Venture Partners. Existing investor Piramal Capital & Housing Finance Limited additionally participated within the spherical. This is EarlySalary’s largest fund increase thus far, following the corporate’s final financing spherical in 2019. The firm had raised $34 million in earlier rounds from Eight Roads, Chiratae Ventures, Piramal Capital & Housing Finance Limited and angel buyers. The newest funding will allow EarlySalary to develop its business considerably within the subsequent 24 months. The sequence D spherical of $110 million features a secondary sale. Unitus Capital acted because the unique advisor for the transaction.

Founded in Pune in 2015, EarlySalary supplies accessible monetary lending options of as much as Rs. 5 lakhs to working professionals. The firm expanded into the affordability section and launched Buy Now Pay Later (BNPL) providers to its buyer section with a transparent concentrate on training, well being and client product financing. Over the course of its journey, EarlySalary expanded its providers to over 150 cities and goals to proceed rising its buyer base.

EarlySalary’s core function is to offer a monetary ecosystem for younger and aspirational people. 80% of Indians use banking providers, nevertheless, virtually 50% of the Indian inhabitants doesn’t have entry to credit score as a consequence of numerous causes. The focus of EarlySalary is to offer a secure and dependable credit score platform to the underserved inhabitants, primarily in Tier 3 and 4 cities, at inexpensive charges.

EarlySalary’s complete suite of merchandise contains private loans payable in EMIs over a number of tenures. The firm will proceed to develop its BNPL section and construct out an intensive community of companions throughout the healthcare and edtech segments.

To create a superior buyer and product expertise, the corporate will proceed to concentrate on enhancing its tech and analytics frameworks whereas delivering a excessive diploma of transparency, danger administration and buyer centricity to attain its progress plan. In the final six months, EarlySalary has added key executives throughout danger, gross sales, treasury and different features to strengthen its administration crew.

The firm has quickly expanded its presence from 18 cities to over 150 cities and elevated its buyer base to 12 million app downloads with roughly 1 million clients. It has grown 7x over the past two years and emerged as a market chief in offering monetary help to younger middle-income people throughout the nation. The business continues to be worthwhile over the pandemic and expects to develop manifold sooner or later.

Commenting on this funding, Akshay Mehrotra, Co-founder and CEO mentioned, “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. 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.”

Ashish Goyal, Co-Founder and CFO mentioned, “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. This capital raise from two of the most marquee investors is also a validation of our core principles of building a business that is customer-focused, profitable and driving meaningful gains in financial inclusion.”

Akshay Tanna, Partner at TPG mentioned, “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.”

Financial inclusion is a core focus of The Rise Funds’ multi-sector international affect investing technique. The Rise Funds have invested in a number of monetary expertise corporations which are constructing a extra inclusive monetary system world wide together with Varo within the US, Duxiaoman in China, and Airtel Money in Africa.

Niren Shah, MD at Norwest Venture Partners mentioned “We are delighted to partner with Akshay and Ashish at EarlySalary, who has built one of India’s leading, profitable and scalable consumer fintech platforms. Digital lending is emerging as one of the fastest growing fintech segments in India and we believe that EarlySalary is well-positioned to serve the credit needs of millions of underserved but aspirational Indians. EarlySalary’s strong growth has been driven by a world-class technology, analytics and governance platform, which has resulted in exceptional credit underwriting and asset quality.”

With the latest digital pointers by RBI, EarlySalary believes that the ecosystem can also be enabling an modern and constructive atmosphere to develop its digital footprint and digital method of banking. EarlySalary goals to develop operations throughout verticals and targets to achieve thousands and thousands of clients. It goals to construct a major presence within the affect classes of offering money loans to younger Indians, wage advances to company workers and an ecosystem to offer avenues like BNPL to its clients.