Pune based Fintech startup EarlySalary has raised $15.7 million in a Series B funding round led by Eight Roads Ventures India along with the participation of existing investors including IDG Ventures India, Dewan Housing Finance Corp Ltd (DHFL) and seed investor Ashok Agarwal.
In 2015, Ashok Agarwal invested around $1.5 million in the Fintech startup. In May 2017, DHFL (Dewan Housing Finance Corporation Limited) and IDG invested $4 million in the firm. EarlySalary also raised around $800k (Rs 5 crore) in its first round of debt financing from IFMR Capital.
Founded by Akshay Mehrotra and Ashish Goyal and managed by Pune-based Social Worth Technologies in October 2015, EarlySalary gives salary advances to employees by joining hands with small, medium and large companies. The newly acquired financing will be used by the company to accelerate their growth with an aim of disbursing 100,000 loans per month. They are also going to offer new products and tenure options to their customers. They also want to improve the technology they use and incorporate machine learning for faster and better efficient risk management. The company uses social algorithm and artificial machine intelligence and so is able to give faster loan approvals. The company also grants short-term loans to young working professionals who do not have a credit bureau rating. EarlySalary wants to automate 90% of its processes soon so that they would be able to disburse the loan instantly.
After determining the credit competence of an applicant, the credit is handed out for a period of 7 days to one month. Customers can repay the amount over a period of next few months at an interest rate of around 2%.
By the end of 2018, the company is aiming to become profitable. Soon, Dhyanesh Shah, Principal at Eight Roads Ventures is going to join the EarlySalary board.
In the last seven months, EarlySalary has received a million more downloads and partners with over 100 sizable employers and organizations to provide instant salary advances and short terms loans to young working professionals through the EarlySalary mobile app.