India-based consumer lending platform operator EarlySalary has raised Rs 1bn ($15.8m) in a series B round that included mortgage provider Dewan Housing Finance (DHFL).
The round was led by Eight Roads Ventures India, a subsidiary of investment and financial services group Fidelity International, and included IDG Ventures India and private investor Ashok Agarwal.
Founded in 2015, EarlySalary operates a short-term lending platform that markets loans of up to $3,100 to young Indian consumers who may be unable to use traditional liquidity channels.
Potential customers apply through a mobile app before EarlySalary’s software assesses their creditworthiness using a mixture of machine learning, credit scoring and social algorithms.
The cash will help expedite EarlySalary’s growth strategy as it aims to reach 100,000 monthly loan disbursements by the end of 2018. Proceeds will also support product development, including the strengthening of the company’s machine learning capabilities.
Dhyanesh Shah, principal at Eight Roads Ventures, will join the board of directors following the investment round.
EarlySalary received $785,000 in debt financing from financial services provider IFMR Capital in September 2017, four months after it had secured $4m in series A funding from DHFL and IDG Ventures India.
Ashish Goyal, co-founder and chief financial officer at EarlySalary, said: “What sets EarlySalary apart is its unique product proposition and its ability to provide customer experience using machine underwriting systems.
“Our relentless efforts aim to achieve a fine balance between customer experience, risk management and service millennials in a new way.”