Indian consumer credit platform EarlySalary has raised $110m in a Series D funding round at a  valuation of $300m, the Economic Times has reported. 

TPG-backed The Raise Fund and Norwest Venture Partners co-led the round, which was a mix of a primary and secondary share sale.

EarlySalary’s existing investor Piramal Capital & Housing Finance also participated in the funding. 

The firm plans to use the investment to offer more loans, expand operations in 150 cities, onboard new staff in senior management roles, and drive the growth of its buy-now-pay-later (BNPL) business. 

Founded in 2015, EarlySalary provides instant loans up to INR500,000 ($6,300) to salaried individuals, with the tenure ranging from three to 24 months.

The average value of the loan is between INR20,000 and INR50,000 but the firm is exploring higher ticket loans worth up to INR80,000 via its BNPL offering. 

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Speaking to the publication, EarlySalary co-founder and CEO Akshay Mehrotra said: “The idea was to take the minimum threshold of investment in this round since we wanted dry powder to be available for the future. 

“PEs understand the NBFC-led credit business better and we felt they were the right choice since they can drive efficiencies. We have continued to perform well in areas of customer repeats, stickiness and customer exclusivity (loyalty). Piramal could not invest in our previous round, so we opened this round to them.”

Currently, the lending platform is disbursing some INR3.5bn ($44m) in loans every month and it aims to take that number to INR10bn ($125m) in the next 12 months. 

TPG partner Akshay Tanna said: “By providing modest, short-duration loans at competitive rates it is improving the financial health of its customer base and empowering them to finance things like upskilling courses, healthcare needs, personal emergencies, and short-term cash flow mismatches.” 

Norwest Venture Partners managing director Niren Shah said: “Digital lending is emerging as one of the fastest growing fintech segments in India and we believe that EarlySalary is well positioned to serve the credit needs of millions of underserved but aspirational Indians.”