EarlySalary in talks to raise about $100 million in new round
Consumer lending platform EarlySalary is in talks to raise a new round from new and existing investors, three people with knowledge of the matter have said Coach. The new funding for the Pune-based startup comes at a time when a few startups in the earning access and salary in the advanced space have been making headlines with notable funding in their early days.
“EarlySalary is in the market to raise approximately $100 million in new funding and TPG Growth is expected to lead the round,” one of the sources said on condition of anonymity. “Existing investors as well as a few new ones can also participate.”
EarlySalary is relaunching a new round after a two-year gap. As of October 2020, the company had raised $10 million in its Series C funding from Eight Road Ventures and Chiratae Ventures. Coach had exclusively reported Development.
EarlySalary partners with small, medium and large businesses to offer short-term loans for shopping, travel, education and medical emergencies. Its product range includes Instant Loans, Personal Loans, BNPL and SalaryCard.
According to the company’s website, it has partnered with over 280 companies and provided its financial wellness services to over 50,000 employees, disbursing over 1,200 crore in payday advances, which is In progress. EarlySalary’s lending partners include Northern Arc Capital, Incred, Vivriti, Aditya Birla Finance and its own NBFC platform: EarlySalary Services Private Limited.
In January, EarlySalary claimed to have disbursed 2.5 million loans worth Rs 5,000 crore since its inception in 2015.
“The deal has reached an advanced stage and if nothing goes further from here, it is likely to close in a few weeks. The size of the transaction may vary depending on investor interest. They are also considering an international expansion,” another source said.
EarlySalary declined to comment for the story. Queries sent to TPG Growth did not elicit an immediate response. We will update the post in case they do.
It is worth mentioning that EarlySalary was under the scanner after the Reserve Bank of India issued a circular for fintech companies in June. According to circular, prepaid payment instruments (PPIs) such as wallets cannot be loaded using lines of credit issued by non-bank financial companies. The circular came as a shock to some startups such as Slice, Uni, LazyPay, PostPe, Jupiter, MobiKwik, Ola Postpaid and EarlySalary.
Following the circular, EarlySalary stopped its card services until further notice.
Founded by Ashish Goyal and Akshay Mehrotra, the company competes directly with Slice, ZestMoney, LoanTap, PaySense, MoneyTap, and IndiaLends among a few others. In the employee financial benefits space, its competitors include Refyne, Jify, Kaarva, Daily Salary in the employee financial benefits space. In January, Refyne recovered $82 million in its series B led by Tiger Global. Earlier this month, Jify also raised $12 million in his series A round.
Although EarlySalary has yet to file its annual financial report for FY22, the company’s operating revenue fell 17% to Rs 84.2 crore in the financial year. 21, compared to Rs 101.6 crore in the previous financial year (FY20). It suffered a loss of Rs 18.8 crore in FY21.