Pune-based fintech startup EarlySalary has raised $15.7 Mn (INR 100 Cr) in Series B funding led by Eight Roads Ventures India. Existing investors IDG Ventures India, Dewan Housing Finance Corp Ltd (DHFL) and early backer Ashok Agarwal also participated in the round.
Commenting on the development, EarlySalary co-founder and CEO Akshay Mehrotra said, “We will use the funding to accelerate our growth. By end of the year, we are aiming at 100K loan disbursements per month (from about 14,000 loans a month now).”
In addition to offering new products and tenure options to customers, the fresh capital will also be used to bolster the company’s technology stack as well as expedite the integration of machine learning capabilities for faster and more efficient risk management.
Mehrotra added, “We have been able to offer access to short-term loans to young working professionals, who don’t have a credit bureau rating. We use social algorithm and artificial machine intelligence for risk assessment. Deploying machine learning has helped us in faster loans approvals.”
The company aims to become profitable by the end of 2018. As per the terms of the deal, Dhyanesh Shah, Principal at Eight Roads Ventures, will be joining the EarlySalary board.
Shah stated, “The company has cleverly leveraged data and technology to provide instant affordable loans to an otherwise excluded customer segment. We look forward to working closely with Akshay, Ashish and the management team at Early Salary.”