Pune-based FinTech start-up, EarlySalary, made an announcement on Monday that it has secured 110 Million US Dollars in a funding round that was led by San Francisco-based investment firm The Rise Fund by TPG Inc, and California-based Venture Capital (VC) and growth equity investment company Norwest Venture Partners. Mumbai-based non-deposit taking housing finance firm, Piramal Capital and Housing Finance Limited, which is an existing investor in EarlySalary, also took part in the fundraising round.
As per reports that have come out, EarlySalary had closed a 100 Million US Dollar funding round from Norwest Venture Partners and The Rise Fund of TPG. According to certain sources, the fundraising round gives EarlySalary a 300 Million US Dollars valuation.
EarlySalary stated that it intended to utilize the latest funding to improve the reach of its Buy Now Pay Later (BNPL) service, expand its footprint to over 150 locations, and speed-up the growth of its loan book.
According to Akshay Mehrotra, who is the co-founder and Chief Executive Officer (CEO) of EarlySalary, given that the company intended dry powder to be accessible in the future, the plan was to accept the lowest amount of funding possible in this round. PEs are a superior alternative since they can increase efficiency because they have a good understanding of the NBFC-led lending service. In terms of customer loyalty and customer stickiness, the firm has maintained a strong performance. Furthermore, Piramal Capital and Housing Finance Limited was able to participate in this fundraising round because they were unable to make an investment in the preceding one.
Akshay Tanna, who is a partner at TPG Inc, made a statement saying that a crucial financial service is provided by EarlySalary to India’s expanding yet unattended middle class group. By offering small, brief loans at affordable rates, it is enhancing the financial well-being of its clientele and giving them the ability to pay for things such as training programmes, medical expenses, short-term cash flow imbalances, and unforeseen personal expenses. TPG’s The Rise Funds have invested in a number of FinTech firms in different countries, such as Duxiaoman, Airtel Money, and Varo, that are constructing a more accessible financial system globally.
Niren Shah, who is the Managing Director (MD) at Norwest Venture Partners, stated that they have confidence that EarlySalary is in a strong position to meet the credit requirements of a huge number of unattended but ambitious Indians. Digital lending is among the fastest expanding components in the financial technology sector in India.