EarlySalary Secures Rs 250 Crore Funding for Enhanced Lending Operations
EarlySalary, the lending division of Fibe, has successfully raised Rs 250 crore ($26.5 million) through non-convertible debentures (NCDs) from various investors. These investors include AK Capital Finance, Franklin Templeton AIF, Vivriti Alpha, SK Finance, Incred Capital, MAS Financial Services, and IB Future Tech.
The board of EarlySalary has approved the allocation of 20,500 NCDs at an issue price of Rs 1 lakh each, resulting in a total of Rs 205 crore ($24 million), according to filings with the Registrar of Companies (RoC). The debentures will be issued in dematerialised form and will carry a coupon rate of 10.7%. Notably, AK Capital spearheaded the debt round with an investment of Rs 45 crore, followed by SK Finance with Rs 35 crore, Incred Finance with Rs 20 crore, and Vivriti Finance also contributing Rs 20 crore.
As outlined in a recent press statement from the company, Franklin Templeton Alternative Investment Fund contributed Rs 20 crore through a primary issuance, bringing the overall investment to Rs 225 crore ($26.5 million). The capital raised will enhance the company’s innovation-driven growth and bolster its lending operations to meet the credit needs of young, tech-savvy salaried individuals.
This funding move follows a resolution in June by Fibe, the parent company of EarlySalary, to inject Rs 100 crore into EarlySalary in tranches. This decision was motivated by the Reserve Bank of India’s directive in November 2023 to increase risk weights on personal loans from 100% to 125%, thus necessitating additional capital support as indicated in regulatory filings.
Founded in 2015 by Akshay Mehrotra and Ashish Goyal, Fibe provides personal loans along with impact loans in various sectors, including healthcare, education technology, insurance financing, and school fee financing, among others. Recently, the brand also introduced India’s first numberless co-branded credit card.
To date, Fibe has raised over $230 million, which includes a $90 million Series E funding round led by TR Capital, Trifecta Capital, and Amara Partners. Previously, the company secured $110 million in its Series D round from TPG and Norwest Venture Partners.
The company has not yet submitted its FY25 financial figures. However, during the fiscal year ending March 2024, EarlySalary’s consolidated revenue witnessed a twofold increase, rising to Rs 812 crore from Rs 392 crore in FY23. Profits for the company also surged significantly, increasing 18 times to Rs 101 crore in FY24, compared to Rs 5.4 crore in FY23.