CARE Ratings provides the entire spectrum of credit rating that helps corporates to raise capital for their various requirements and assists investors to make an informed investment decision based on the credit risk and their own risk-return expectations.
EarlySalary, India’s largest consumer lending application, has received a credit rating of CARE BBB; Stable (Triple B, Outlook: Stable) from CARE Ratings. The ratings assigned to the debt instruments of EarlySalary takes into account its adequate capitalization along with participation from reputed private equity investors, diverse and deep experience of the top management, and robust business and operations process.
The key rating strengths of EarlySalary includes participation of diverse investors, diverse experience of management in retail & financial services business, comfortable capital adequacy, robust business, operations process and liquidity position. In 2018, EarlySalary raised $ 15.7 million in Series B funding led by Eight Roads Ventures India. EarlySalary also recently became the first consumer fintech lender to complete a loan assignment transaction with Northern Arc Capital worth $ 1 million. This is in addition to an NCD issuance of $2 million recently.
Speaking about this development, Akshay Mehrotra, the CEO and Co – founder of EarlySalary said, “We recently completed three years of operations and this credit rating from CARE, one of the leading credit rating agencies in India, is a validation of all our business efforts. 2018 was an extremely eventful one for EarlySalary as we raised our Series B funding, became the largest consumer lending application in the country, and acquired a promising FinTech startup. Further, we became the first consumer lender to complete a loan assignment transaction and worked on many other initiatives to serve our customers better. We are proud of these achievements, which establishes how strong an impact we have made on the market in a relatively short period of time.”
Elaborating on this, Ashish Goyal, CFO and Co – founder of EarlySalary added, “The Investment grade credit rating from CARE is a testimony of our strong business principles, robust models, and sound risk management practices. While the last few months have been challenging for NBFCs, we have received strong support from the market, and we are confident that this will instill more confidence and will help in the expansion of our resource base and liquidity profile.”
EarlySalary caters to salaried professionals, above 21 years of age with a monthly salary of above Rs 18,000. 24 – 30 year olds are the largest user base of the mobile first application and over 55% of these borrowers work for the top 200 corporates in the country. The application has been downloaded over 9 million times so far and over 500,000 loans worth INR 850 crores has been disbursed. Users can currently avail loans of up to INR 2 lakhs; a line of credit ranging from 50 days to 2 years and interest-free EMIs for shopping & travel.
Founded by Akshay Mehrotra and Ashish Goyal, EarlySalary is a mobile app, which allows salaried individuals to avail of financial assistance. This is similar to salary advances or credit card cash withdrawals, empowering consumers with ready cash when they need it the most. The company conducts prudent risk assessment by leveraging machine learning to go beyond financial underwriting.