Recognizing the need is the key for Startups, which are coming everywhere across Bengaluru which can be renamed as Startup hub from the IT capital very soon in near future. The EasySalary startup is one wherein of the kind where in the need for urgent cash is addressed. Gone are the days and the long procedures and queues in the bank. Now loan is available up to 50% of your salary with just a few clicks and in a matter of 10 minutes.
EarlySalary founded in 2015 is a mobile-first lending platform. It provides the salary advances and instant cash loans and provides a smart risk scoring system. These loans are similar to salary/cash advances or credit card cash withdrawal. The startup has operations in Mumbai, Pune, Chennai, Bengaluru, Hyderabad, New Delhi, Jaipur, and Ahmedabad right now.
They are confident of disbursing 30,000 + loans per month by the end of the financial year. The target they are setting for themselves is to cross 1 Mn downloads in the coming month. The start-ups provide salary advances up to 50% monthly salary to its users. They claim to have sanctioned 70% of the loans in a matter of 10 minutes. The salary advance/cash loans are transferred to the bank immediately.
The amount lent is anywhere between INR 8,000 to 2 lakh. The money is lent at a cost as low as INR 9 per INR 10,000, per day. The company has partnered with corporates as well as SME’s to provide the salary advance to employees across the country.
As per the Nasscom report, the Indian fintech software market is expected to touch $2,4 bn by 2020 from the current $ 1.2 Bn. As per Inc42 Datalabs, fintech start-ups have attracted the highest number of funding deals in the first half of 2017.
The Pune based fintech EarlySalary has now raised $782K debt financing from IFMR Capital. In May 2017, they had raised $ 4 Mn in Series A funding from IDG Ventures India (IDGV1) and Dewan Housing Finance Corp Ltd(DHFL)
The startup has decided to use the recently raised funding to accelerate the growth. They claim to have lent 7,000+ loans in the month of August 2017.
IFMR Capital along with alternative investment fund had invested $2.5 Mn in Bengaluru-based online lending platform Capital Float. EarlySalary will now be in competition with other fintech players SMEcorner, Innoviti, FlexiLoans, KredX, etc.