Online lender EarlySalary buys CashCare, an instant consumer loan startup
EarlySalary, a Pune-based online lender, has acquired Mumbai-headquartered startup CashCare, which provides consumer loans through non-bank financial companies, for an undisclosed amount, told TechCircle a senior manager of the payroll advance company.
As part of the deal, CashCare co-founders Vikas Sekhri and Suraj Mundada will join EarlySalary.
CashCare analyzes a user’s purchase and wallet data to instantly convert online purchases into EMI loans without a credit card. This is called fund financing. The company has partnered with 30 companies whose products can be purchased by the user, such as MakeMyTrip, ShopClues, Byju’s and HP. For the financing of the loans, it has joined forces with non-bank financial companies.
Akshay Mehrotra, co-founder and CEO of EarlySalary, said his company has also introduced “pay later” and EMI functionality on its platform in partnership with a few merchants such as Amazon and Big Bazaar. âOur values ââin this segment are quite low compared to our other products. In this category, we make about 1,000 loans per month.
CashCare also grants around 1,000 loans per month. With the acquisition, we would have instant access to all CashCare partners, in addition to putting the cash financing product under our umbrella, which will help us grow faster, âhe said.
Owned and operated by Social Worth Technologies Pvt. Ltd, EarlySalary was founded by Mehrotra and Ashish Goyal in 2015. The three-year startup offers a mobile app that allows employees to benefit from instant loans for an average of 30 days or until the next pay cycle. Users can avail these loans in the form of payday advances or cash withdrawals by credit card. The mobile application is available on Google Play Store and Apple App Store.
The company claims to make around 25,000 loans per month, paying out around Rs 60 crore per month.
In its latest fundraiser, the Pune-based company raised 100 crore rupees ($ 15.7 million) in a Series B round led by Eight Roads Ventures India in January. Existing investors IDG Ventures India, Dewan Housing Finance Corp. Ltd. (DHFL) and Ashok Agarwal, director of foreign exchange and money transfer services company Transcorp International Limited, also participated in the round.
Last year, the company raised funds through a mix of stocks and debt. In May of last year, he raised $ 4 million in his Series A round led by IDG Ventures India and DHFL. In September 2017, he raised 5 crore rupees ($ 780,675) in debt financing from IFMR Capital.
The company says it can disburse up to 50% of an individual’s salary in less than 10 minutes and that about 70% of its loan applications are disbursed that way. Depending on the nature and amount of the loan, the company offers repayment terms ranging from seven days to three months maximum. The company capped the upper limit to sanction loans at Rs 2 lakh.
Users can also use the loan limit to buy online on credit. EarlySalary, which currently offers its services in 15 cities across India, plans to introduce new products that can meet the short-term credit needs of young working professionals.