The startup was introduced on February 23, 2016 and has already received 1 Lakh App downloads and loan requests.

Based in Pune, Anticipated salary is a Fintech start-up that uses new technology to lend funds. The company aims to deliver a revolutionary new business model that is expected to change the credit market in India.

EarlySalary was founded with the mission of offering consumers the opportunity to benefit from short term loans with a minimum of legal formalities. The service is available as a mobile app that offers small bridging loans to working professionals who are cash-strapped and in need of funds until their salary is credited early next month. Users can simply download the mobile app and log in using their Facebook account with some basic information and apply for a loan. Within minutes, the user will be notified whether their loan application has been approved or not. Once the documents are approved through the mobile app, the money is transferred to the loan seekers account within minutes.

The startup was introduced on February 23, 2016 and has already received 1 Lakh App downloads and loan requests.

About the founders

o Akshay Mehrotra, Managing Director of EarlySalary

Armed with an MBA from Symbiosis Pune, Askhay Mehrotra now runs his own EarlySalary start-up along with two other partners. Previously, Akshay was associated with brands such as Future Retail Ltd, PolicyBazaar.com, Big Bazaar and Bajaj Allianz Life Insurance Co. Ltd. An exemplary leader, Akshay brings with him a wealth of 12 years of experience in strategic planning and marketing. It was presented as one of the 2013-14 Most Talented CMO Awards of the Year in the Retail Space, by CMO Asia.

o Ashish Goyal, CFO at EarlySalary

One of the co-founders and CFO of EarlySalary, Ashish Goyal heads the company’s finance department. He is a finance professional with over 14 years of experience spanning the full spectrum of finance including corporate finance, management control, risk management and strategic initiatives. Ashish is a Qualified Public Accountant with an All India ranking of 37. He was also named “Smartest Bond Fund Manager” by Asset Magazine, Singapore in 2011. Prior to joining EarlySalary, he was a partner at Bajaj Allianz for 14 years as director of investments.

Sujata Sangwan interacts with and spoke to Akshay Mehrotra, CEO, EarlySalary

How did EarlySalary start?

Akshay Mehrotra, co-founder and CEO of EarlySalary.com .com, which is India’s first fully digital mobile app for getting a quick loan for a short period, started to solve a very simple problem. Money usually runs out at the end of the month and the last 10 days of each month get tough. EarlySalary.com offers small bridging loans that are given to people within minutes to help them overcome the cash shortage at the end of the month.

In October 2015, Akshay and his close friends Ashish Goyal decided to take the plunge with the general idea of ​​a short term lending platform. Solutions to each of the problems were put in place and he and his friends were able to build a new generation financial institution at high speed and in February 2016, EarlySalary was launched on the Google App Store. Today, EarlySalary.com is a mobile app-based lending platform that offers fast loans and leverages technology layers that allow short-term loans, between 7 days and 30 days. With two months, EarlySalary.com already has 105,000 app downloads and is already successfully offering loans in Pune, Bangalore and Chennai and will soon expand operations to more cities.

Service offered and USP

EarlySalary.com grants loans of Rs. 10,000 up to 1lac for a term of 7 to 30 days. The credit limit is subject to many variables, but in principle you can take up to 50% of your salary as a 30-day cash advance loan.

FinTech is currently the big buzz in the start-up space and many players are disrupting the traditional banking space by offering both the resolution of consumer issues such as payments, loans, financial inclusion or resolution. business issues in the banking space, including payment aggregation or risk analysis spaces.

EarlySalary differentiates itself from existing products and institutions in three ways:

o EarlySalary is a short term loan product positioning less than 30 days is the key differentiator, while most banks and other financial institutions offer longer-term mandates.

o The age base and primary focus is the credit bureau score for the decision: at EarlySalary we focus on young workers, we want to give credit to the young labor force in India and use multiple decision systems including part of the social media scorecards from the scores of the offices of credit. We are one of the few financial institutions to focus on 21-28 year olds while traditional institutions offer various loans to young working populations.

o Lifestyle loan: EarlySalary allows users to have a lifestyle early in their career, its similarity to the payday / cash advances that are offered by companies to their employees, but it is not something that financial institutions offer.

o FinTech but Financial Institutions: we are a fully digital platform, but we are end-to-end financial institutions and not just a P2P platform. We acquire clients, we decide, we take the risk on our books, and we recover clients.

Funding

The company has already received $ 1.5 million in early stage seed funding from Ashok Agarwal of Transcorp Group.

Monetization model and pull details

Our revenue model is primarily focused on deployed capital and digital systems help us lower operating costs, while a shorter tenure helps us run capital better. While other income includes fees, default charges etc. similar to those of other financial institutions.

More importantly, as a financial institution, our basic model is to borrow low rate institutional debt and lend at a higher rate and earn on income averaged over. Currently we are equity funded, but as we grow our book debt will be critical to our growth.

Future plans

We are currently focused on improving our business model and build volume. We have invested in building acceptance and great pulls in the market. We are optimistic that in the next 24 months we will be able to build a loan portfolio of 200-300 cr per month which will require funding in the future.

Marketing plans

Most of our marketing is related to the merger with the company where we offer salary advances to company employees and App Store marketing. We are already in direct contact with more than 20 large companies where we offer salary advances to company employees in our operational markets. Additionally, on Google Play and Apple Store, our app is one of the top financial apps with over 100,000 downloads and growing over 1,000 per day.

Challenges encountered

Credit scoring is very difficult and the judgmental scorecard cannot go wrong without the latest amounts of customer data and similar performance to compare. We were very fortunate to have approached both the credit bureaus in India and data analytics companies in the United States for help and we are able to overcome this caucus. Within the framework of a risk on the activity of the book, it is important not only to grow while controlling the acquisition costs at a low level, but at the same time to keep our delinquency under control.

Market size and opportunity

With the penetration of the Internet, technology in the financial space is catching up in India. From online shopping to online financial transactions, everything is gradually becoming digital now. The long and tedious process of obtaining loans from banks has been shortened with just a few clicks made using smartphones.

Today, Fintech startups have successfully responded to underserved micro and small business segments for their financial needs that are not met by banks. FinTech is indeed a complex ecosystem that is evolving rapidly. The global potential of FinTech in India is very promising. It also largely depends on governments, regulators, financial institutions, entrepreneurs, lenders, borrowers, market players, investors and lending platforms to play a responsible role in supporting the development of this powerful business model.

Currently in India, the outstanding personal loan is close to Rs.135,000 cr, while the outstanding credit card is Rs.3,750 cr. Today, only 15% of young salaried workers have access to credit cards. Hence, this creates huge potential for EarlySalary.com to tap the remaining young population of India looking for easy loans.


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