Mumbai: EarlySalary.com, a fintech start-up that offers cash advances and short-term loans to young professionals has raised Rs100 crore in a series B round of funding led by Eight Roads Ventures India, the investment arm of Fidelity International Ltd, the company said on Thursday.
Existing investors of EarlySalary, IDG Ventures India, Dewan Housing Finance Corp. Ltd. (DHFL) and seed investor Ashok Agarwal also participated in the round.
EarlySalary is a mobile app, which allows salaried individuals to avail instant loans for an average tenure of 30 days or till the next salary cycle. EarlySalary was founded by Akshay Mehrotra and Ashish Goyal. Mehrotra previously served as the chief marketing officer at Big Bazaar, while Goyal was associated with insurance provider, Bajaj Allianz General Insurance as its chief investment officer.
The company will be using the fresh funds to accelerate its growth plans and targets to achieve 100,000 loan disbursements per month by the end of 2018.
EarlySalary was rolled out in February 2016 offering loans in the range Rs8,000 to Rs1 lakh based on a proprietary algorithm which determines the credit worthiness of an applicant. The credit is given for a period of seven days to one month.
The start-up sees itself as a first line of credit for young working Indians, said Akshay Mehrotra, co-founder and CEO of EarlySalary.
As part of the recent transaction, Dhyanesh Shah, principal at Eight Roads Ventures will join the board of EarlySalary. In May, EarlySalary raised $4 million from IDG Ventures India and DHFL.