Eight Roads, Chiratae pour more money in digital lender EarlySalary
Photo Credit: VCCircle

Online lending platform EarlySalary has raised Rs 75 crore ($10 million) as part of its Series C funding round from existing investors.

Eight Roads Ventures and Chiratae Ventures have invested Rs 37.5 crore each in the startup, Entrackr reported citing regulatory filings.

Following the transaction, Eight Roads holds 29.97% stake in EarlySalary and Chiratae owns 25.54% stake. The shareholding of co-founders Akshay Mehrotra and Ashish Goyal now stands at 13.9% from 18.33%, respectively.

An email sent to EarlySalary, Eight Roads and Chiratae did not elicit a response till the time of filing this article.

VCCircle had reported in September last year that EarlySalary was is in discussions to raise its new equity round of funding. 

The Pune-based startup, which is operated by Social Worth Technologies Pvt. Ltd, was founded in 2015. EarlySalary allows salaried individuals to avail instant loans for different periods of time. 

It also allows these professionals to take out shopping or holiday loans for platforms such as Amazon and Flipkart as well as MakeMyTrip and Yatra.  

Mehrotra had told VCCircle in September that the company has so far disbursed over Rs 1,650 crore through a million loans and hoped to hit Rs 450 crore in assets under management by the end of March 2020.

EarlySalary had raised Rs 100 crore ($15.7 million) in a Series B funding round led by Eight Roads in January last year. Existing investors Chiratae, Dewan Housing Finance Corp. Ltd, and Ashok Agarwal, the director of forex and money transfer services firm Transcorp International Ltd, also participated in the round.

Digital lenders

The digital lending space has attracted a lot of attention from investors.

Earlier this week, FlexiLoans.com, a fintech lender focussed on small and medium enterprises, raised funding through an equity and debt mix from investors including the family office of Falguni Nayar and husband Sanjay Nayar.

In August, ZipLoan raised Rs 15 crore (about $2 million) in debt funding from Strides Ventures.

In April, Bengaluru-based digital lender Capital Float raised $15 million in funding from existing investors including global technology giant Amazon, Sequoia Capital, Ribbit Capital and SAIF Partners.

In March, microlending-focussed SmartCoin Financials Pvt. Ltd mobilised $7 million in a round led by LGT Lightstone Aspada, the India-oriented impact investment arm of LGT Lightstone.

In September last year, digital lending platform LoanTap raised $12 million in a Series B investment round led by Avaana Capital, an Indian venture-growth investment firm.  

Development financial institutions have also invested in this segment, with FMO and International Finance Corporation backing non-bank lenders such as Aye Finance and InCred Financial Services.

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