SalarySe Nets $5.25 Mn Funding To Roll Out Credit-On-UPI For Salaried Class

Credit-on-UPI app SalarySe has secured $5.25 Mn (INR 43.62 Cr) as a part of its seed funding round led by Peak XV Partner’s rapid scale-up programme Surge, with participation from early-stage VC fund Pravega Ventures.

The startup plans to deploy the fresh proceeds to further ramp up its technology stack for financial management application that taps the credit-on-UPI and drive its adoption in India.

It also aims to roll out credit-on-UPI system for salaried employees in the next few months and is partnering with banks, HR SaaS platforms and employers for the same.

Founded by Mohit Gorisariya, Saumeet Nanda and Piyush Bagaria in June last year, SalarySe offers revolving credit on UPI by integrating with the payroll systems of firms and uses a lien on salary for repayments as a lever to reduce credit risks.

“Currently, we are focusing on three key sectors – information technology and people services, manufacturing and sales-led sectors including FMCG, consumer durables etc,” said Gorisariya.

“The model of reaching the consumer base through employer integration is the most responsible method of expanding revolving credit as it solves for risk first. Combining the power of payments data and employment data allows us to build the most data-rich underwriting for our partner financial institutions,” said Nanda.

The National Payments Corporation of India (NPCI), which operates the UPI network, launched the credit line on UPI feature last year. The feature allows users to pay for transactions made on the network through pre-sanctioned digital credit lines from banks. 

Consequently, the Reserve Bank of India (RBI) allowed scheduled commercial banks to offer credit lines to their customers through the Unified Payments Interface (UPI), in September.  

SalarySe’s funding underlines the fact that startups with similar services are gaining traction from a lot of investors.

In November last year, credit card management solutions startup Kiwi raised $13 Mn in pre-Series A funding round with plans to deploy the fresh proceeds to scale up its ‘credit cards on UPI’  offerings across the country. 

Further, multiple fintech startups like Jupiter, Freo, and PayU are actively working on collaborating with banks to ensure credit lines on UPI for their users.