FinTech Start-up EarlySalary Raises USD 4 Million as Series A Funding from IDG Ventures India & DHFL
|EarlySalary App Screenshot|
- With EarlySalary Mobile App, Ultra Short Term Loan On Mobile App, Real Time, Any time is becoming a fast reality for Millennials and Gen Z.
- India’s 1st Start-up to offer Salary Advances & Instant Cash Loans on Mobile App
- Super Fast decisioning helps get loan approval in seconds with the help of Social algorithm and artificial machine intelligence
- Only Lender which helps young working professionals get access to credit without Credit Bureau history boosting their financial confidence
The company focuses on helping young working professionals get Instant Loans and Salary Advances in minutes and is fast becoming the first line of credit to young working Indians. More than 80% of its customer base is in their first career roles and most of them are new to credit and are first time borrowers. Over the past year, EarlySalary developed its Underwriting System which is a self-learning Algo Based Decisioning System. The System in real time reviews Social Media and Credit Bureau data of customers and helps approve the loan for them.
Targeted at young working professionals with a clear focus, – ‘1st line of Credit for young working Indians’, Akshay Mehrotra, Co-Founder & CEO commented ‘We are very excited to have IDG Ventures India and DHFL as Investors on Board and this combination and capital will provide the necessary growth impetus and management depth needed to accelerate growth and the innovation process at EarlySalary.
Ashish Goyal, Co-Founder & CFO further added, ‘As a team, we are focused on solving the problem of providing access to instant credit & cash for a short period of time and at a reasonable price all time anytime’.
Speaking on this occasion, Karthik Prabhakar, Director, IDG Ventures India Advisors said, ‘We believe FinTech firms are changing the way India will bank and EarlySalary’s capability of using Social Media based Underwriting decisioning will help many young working professionals get access to credit which is otherwise not possible. This over a period of time will create a wealth of information on credit-worthy customers, to offer more diverse products through partners’.
Commenting on the development, Harshil Mehta, CEO, DHFL said, “We see a potential opportunity in EarlySalary which is led by an enterprising and talented group of founding members. The financial technology space in India is at an exciting stage and is steadily making deep inroads into the BFSI industry supported by cutting edge technology. We look forward to a synergistic association that will enable us to leverage their technology solutions, and to working closely with the team as they scale up the business.”
The Series A capital will be primarily deployed in three particular areas, viz:
- Build leverage on capital deployed for building products and lending book
- Expand team specifically in skill sets of machine learning.
- Grow customer base and provide 200,000 loans in this FY
EarlySalary was co-founded by Akshay Mehrotra and Ashish Goyal 18 months back and had raised Seed Funding from Ashok Agarwal of Transcorp International. Till date, the app has received 3,50,000+ downloads across its Android & iOS mobile app platform. The company has distributed 15,000+ loans to customers borrowing between Rs.8,000 to Rs.1,00,000 at a low cost of Rs.9 per Rs.10,000 per day. The company also partners with many large Corporates as well as SMEs across the country to give Salary Advances to employees.
EarlySalary is a short term small amount Loan given to Salaried Individuals on a mobile app. These loans are similar to salary/cash advances or credit card cash withdrawal. EarlySalary is a mobile app which allows you to apply and get a loan approval within minutes and instantly get money transferred to your account. Coupled with Social profiling which gives better risk assessment, helps go beyond financial underwriting and IndiaStack; EarlySalary aims to do more prudent risk assessment and lend better and is today fast becoming the fastest lender in the country.
- Super Fast: 70% loans are given in under 10 minutes
- Instant CASH: Salary advance/cash loans transferred to bank anytime instantly
- Short duration: Cash loans from 7 days up to 30days
- Instant Transactions: From Rs.8000 to Rs.1Lac Cash transferred to Bank
Key Founding Members Include:
Akshay Mehrotra, CEO, previously served as the Chief Marketing Officer at Big Bazaar, Future Retail Limited, CMO at PolicyBazaar.com & Marketing Head at Bajaj Allianz Life Insurance
Ashish Goyal, CFO, is a chartered accountant by education and previously served as the Chief Investment Officer at Bajaj Allianz General Insurance.
Vimal Saboo, CBO, previously served as the Business Head of Edelweiss Capital and also served in senior roles at Axis Bank.
Vivek Jain, CTO, who previously served as the Principal Technology Architect at Infosys.
About IDG Ventures India
IDG Ventures India is a leading technology venture capital fund in India. The fund is part of IDG Ventures, a global network of technology venture funds with over $6 billion under management with over 220 investee companies and 10 offices across Asia and North America. IDG Ventures has been an investor in companies including Funzio, Ctrip, Tencent, Baidu, Netscape, BabyCenter, Sohu, Vancl and VinaGame. In India, IDG Ventures has invested in companies such as Flipkart, Myntra (acquired by Flipkart), Yatra (NASDAQ:YTRA), Newgen, Brainbees (FirstCry.com), Manthan, Valyoo (Lenskart.com), NestAway among others. More information about IDG Ventures India is available at www.idgvcindia.com
DHFL was founded in 1984 by Late Shri Rajesh Kumar Wadhawan with a vision to provide financial access for Indians to own a home of their own. Today, led by Mr. Kapil Wadhawan, CMD, DHFL, the company is CARE AAA rated and reckoned as one of India’s leading financial institutions with a large presence across the country, in addition to representative offices in Dubai and London.
Throughout its years of growth, DHFL has stayed true to its core vision of financial inclusion, especially to the low and middle income customers across India. The company’s wide network, coupled with insights into local customer needs, has enabled the company to provide meaningful financial access to customers even in India’s smallest towns. With a strong business foundation, an extensive distribution network, proven industry expertise and a deep understanding of the Indian customer, DHFL is a respected and trusted financial services company in India with a concerted focus towards enabling home ownership to the low and middle income customer. For further information, please visit www.dhfl.com.