EarlySalary in talks to raise $100 million in funding from TPG, Norwest
- ByStartup Story | August 13, 2022
Indian digital lending fintech SalaryBefore is in talks to raise $110 million in a funding round led by private equity firm TPG. They said the official announcement of the investment is expected in the coming days.
New Reserve Bank of India (RBI) guidelines on digital lending, which re-emphasize regulated businesses and give an edge to fintechs with an active NBFC (non-bank financial company) license, coincide with the latest collection of funds for Pune-based company EarlySalary.
The proposed deal “will value EarlySalary at approximately $300 million post-investment,”
Following the banking regulator’s announcement earlier this week on August 12, due to the RBI’s preference for regulated entities, fintechs would be forced to strengthen their NBFCs and work to better capitalize them in order to participate and compete. exercise more control over the risk-taking process.
In addition, the regulated body is required to collect all fees due to a lending service provider directly from the borrower. This demonstrated that the RBI is interested in regulated organizations that can control these loan disbursements. According to a person familiar with how the business works, “EarlySalary was able to capitalize 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 payday advance application enables employees to receive direct and fast loans from the company 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.
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