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Fintech startup EarlySalary on Thursday said it has raised Rs. 100 crore in a Series B funding round led by Eight Roads Ventures India. Existing investors IDG Ventures India, Dewan Housing Finance Corp. Ltd. (DHFL) and seed investor Ashok Agarwal also participated in the round.
The company offers salary advances and instant cash loans. It will be deploying the funds to accelerate its growth plans and target 100,000 loan disbursements per month by the end of 2018.
“We see ourselves as the first line of credit for young working India,” said Akshay Mehrotra, co-founder and CEO of EarlySalary, in a statement. “The key to our success will be helping more and more people without any human interface. As we scale this, it will be our clear differentiator,” he said.
The firm said it has disrupted the way young Indians are borrowing. The firm said it is replacing loans from friends, family and employers with borrowing real-time through a mobile App from the comfort and convenience of their homes. The company said it has provided access to short-term loans to young working professionals even without a credit bureau rating, using social media surrogates for risk assessment and machine learning scorecards for faster loan approvals.
“The company has cleverly leveraged data and technology to provide instant affordable loans to an otherwise excluded customer segment,” said Dhyanesh Shah, Principal at Eight Roads Ventures, in a statement. “The financial services market in India is ripe for disruption,” he added.
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