Indian digital lending startup EarlySalary is in talks to raise $110 million in a round led by private equity firm TPG, a source with direct knowledge of the matter told Reuters.
Norwest Venture Partners will also come in as a new investor in the deal, which involves some existing investors paring stakes, according to the source, who did not wish to be named as the talks are private.
EarlySalary, which competes with LoanTap and PaySense, offers personal loans of up to 500,000 rupees (about $6,319) for short tenures through its mobile app and tie-ups with companies.
TPG and EarlySalary declined to comment, while Norwest did not respond to a request for comment.
Cheap internet plans and proliferation of online payments have delivered a fillip to India’s fintech industry, leading to a spurt in startups offering instant loans over a mobile app.
Globally, digital lending has also attracted big dollars. Investors poured nearly $21 billion into the sector last year, an all-time high and about 90% higher than the year before, according to CB Insights, which tracks private investments.
Founded in 2015 and backed by Chiratae Ventures and Eight Roads Ventures, EarlySalary raised $15.7 million in a funding round in January 2018.
The new funding talks take place as India’s central bank firms up regulations for digital lenders after cases of harassment and violation of privacy of creditors by certain platforms.
On Wednesday, the Reserve Bank of India issued guidelines that allow only regulated entities such as banks and shadow lenders to disburse and collect re-payments on loans.