EarlySalary, a consumer lending fintech located in Pune, has raised a $110 million series D fundraising round headed by TPG’s The Rise Fund and Norwest Venture Partners.
Following the company’s latest funding round in 2019, this is EarlySalary’s largest fundraiser to date. Previous rounds of funding totaled $34 million from Eight Roads, Chiratae Ventures, Piramal Capital & Housing Finance Limited, and angel investors.
The latest investment will be used to swiftly expand the company’s operations over the next 24 months. A secondary sale is included in the $110 million series D round. The transaction’s sole advisor was Unitus Capital.
The financing will help the company build various skills that allow the company to service a bigger proportion of clients much more efficiently. “We are confident in our ability to continue developing and grow our customer base 10-fold,” said Akshay Mehrotra, co-founder, and CEO of EarlySalary.
EarlySalary aims to provide essential financial services to the underprivileged, underserved middle-income group so we can help improve the financial health of its customers through short-term loans provided at a competitive rate. This will help them upskill their courses, personal emergencies, healthcare needs, and any short-term cash flow mismatches.
TPG partner Akshay Tanna stated, “Akshay and Ashish have established a world-class team and a market-leading product that is positioned to continue to fulfill the requirements of India’s burgeoning middle class, and we are happy to be a part of its next chapter of growth.”
The Rise Funds have invested in several financial technology businesses that are working to create a more accessible financial system around the world, including Varo in the United States, Duxiaoman in China, and Airtel Money in Africa.
EarlySalary is well-positioned to meet the credit requirements of millions of underprivileged but ambitious Indians.” “World-class technology, analytics, and governance platforms have resulted in excellent credit underwriting and asset quality, fueling EarlySalary’s remarkable development,” said Niren Shah, MD at Norwest Venture Partners.
EarlySalary, founded in Pune in 2015, offers working professionals affordable financial financing options of up to Rs. 5 lakh. With a distinct focus on education, health, and consumer product finance, the company expanded into the affordability market and launched Buy Now Pay Later (BNPL) services to its customer segment. Over the course of its journey, the company’s presence has rapidly expanded from 18 cities to over 150 cities, and its client base has grown to 12 million app downloads with about 1 million consumers. It claims to have expanded seven times in the last two years.