EarlySalary, an app that offers cash advances and short-term loans to young professionals, has raised Rs 100 crore in a series B round of funding which was led by Eight Road Ventures.
The funding round also saw participation from its existing investors DHFL (Dewan Housing Finance Corporation Limited), IDG and its seed investor Ashok Aggarwal.
While Delhi-based Ashok Aggarwal invested $1.5 million in 2015 in the Pune-based fintech startup, IDG Ventures India Advisors and publicly traded lender DHFL invested $4 million in May last year.
In September last year, EarlySalary raised its first round of debt financing of Rs 5 crore from IFMR Capital.
Founded in October 2015 by Akshay Mehrotra and Ashish Goyal and managed by Pune-based Social Worth Technologies, EarlySalary partners with small, medium and large companies to give salary advances to employees.
The firm offers loans based on a proprietary algorithm which determines the credit worthiness of an applicant. The credit is handed out for a period of seven days to one month. The customer can repay it over the next few days at an interest rate of around 2% per month.
With the latest funding, the startup plans to launch a line of credit product for its customers and scale up business to target 1 lakh loans to be disbursed per month.
Besides, the firm is also aiming for 90% automation of its processes by next year so that the loan disbursement can be done instantly.
The development was first reported by ET.