EarlySalary in talks to raise $100 million in funding from TPG, Norwest
Indian Digital lending fintech EarlySalary is in discussions to raise $110 million in a funding round headed by private equity firm TPG. They stated that the official announcement of the investment is anticipated within the next few days.
The Reserve Bank of India’s (RBI) new guidelines on digital lending, which put the emphasis back on regulated firms and give fintechs with an active NBFC (non-banking financial company) licence an advantage, coincide with the newest fundraising for Pune based company EarlySalary.
The proposed deal “will value EarlySalary at roughly $300 million post the investment,”
Following the banking regulator’s announcement earlier this week, on August 12 , as a result of the RBI’s preference for regulated entities, fintechs would be compelled to strengthen their NBFCs and work toward better capitalising them in order to take part in and exert more control over the risk-taking process.
Additionally, the regulated organisation is required to collect any fees due to a loan services provider directly from the borrower. This has demonstrated that the RBI is interested in regulated organisations that can control such loan disbursements. According to a person familiar with the operation of the company, “EarlySalary has been able to capitalise well on their NBFC. The new round will help raise more money for them.”
The Pune based startup was founded in 2015 by Ashish Goyal and Akshay Mehrotra, EarlySalary is a one stop solution for all your instant cash needs. India’s first salary advance application allows salary earners to receive direct, fast loans from the company in the amount of up to Rs 5 lakh, which are deposited into the borrower’s bank account. These loans often have terms of three to 24 months.
EarlySalary seems to be a fascinating startup with a motivating turn of events on financial services platform. I’m sure this startup would continue to prosper in its journey ahead. My best wishes to the entire team on financial services platform. This will give them a huge accomplishment in the future.Shishir Gupta, Founder and CEO, StartupLanes
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