The founders Ashish Goyal and Akshay Mehrotra will raise stakes from 4 to 12% by this round of funding
A few days ago Sachin Bansal, the founder of Navi along with Byju Raveendran from BYJU’S had made investments in the respective startup in order to increase ownership stakes
The startup also plans to raise funds for debt amounting to INR 250 crore ($31 Mn) in FY2022-FY2023.
As we see startup founders reducing their stakes to raise funds, the founders of the fintech startup for consumer lending EarlySalary are increasing their stakes by 3x.
The Pune-based founders of the startup Ashish Goyal, and Akshay Mehrotra have increased their stakes from 4 percent to 12 percent on a completely dilute basis.
The startup at an extraordinary general meeting last week , had approved an resolution to distribute 18,000 non-cumulative Series-D1 obligatory and fully convertible preference shares of the founding team for a sum of $13 million (INR 104.2 Cr).
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In the filing with regulators, founders who have pledged the company to fund INR 104.2 Cr will need to pay an initial amount that is INR 18,000. It should be noted that founders are expected to have to pay half of funds during the 4th year, and the remainder during the 5th year. A message addressed to EarlySalary with any questions did not get a response when publishing this article.
In the past, we’ve witnessed Sachin Bansal of Navi investing in his company in order to continue having a majority stake. Another example would be Byju Raveendran, cofounder of the eponymous Indian tech giant BYJU’S is investing $400 million and will increase the stake he holds in this $22 billion valued company.
The news comes nearly 2 years since EarlySalary was able to raise $10 million in what appears to be the company’s the Series C round of capital from its investors who are already in place including Eight Road Ventures, Chiratae Ventures, GenNext Ventures, and others. In the year 2018, the company was able to raise $15.7 Million through its Series B funding round from Eight Roads Ventures, IDG Venture India.
According to this regulatory document, the company is also planning to raise funds for debt amounting to INR 250 crore ($31 Mn) in FY2022-FY2023.
In 2015, the company was founded with the help of Goyal and Mehrotra in 2015, EarlySalary is a loan app that focuses on working professionals who are young. According to its site, the company promises to provide instant loans that can be as high as INR five Lakh. It claims to have more than 10 million downloads, and claims that it has granted INR 5 000 Cr of loan to 2.4 million customers.
The startup based in Pune boasts of tie-ups with 700 businesses. The eligibility requirements to qualify for loans through EarlySalary consist of one of the following criteria: the) the age requirement of between 21 and 55 years old as well as the b) the minimum salary must be INR 18,000 (metro cities) and INR 15,000 (non-metro cities) and c) is required to reside in India. Indian resident.
The company claims to be operating in 27 cities across the country, including Ahmedabad, Jaipur, Kolkata, Gurugram, Mumbai, among others.
EarlySalary direct or indirectly competes with the startup companies offering consumer loans, such as Simpl, Slice, ZestMoney among others.
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