 "Fintech, tech")
SalarySe, a fintech company that offers Credit-on-UPI, on Tuesday raised $5.25 million in seed funding led by Surge, Peak XV’s rapid scale-up program, and Pravega Ventures.
The company has plans to develop a tech stack for the credit-on-UPI (Unified Payments Interface) product and drive its adoption in the country with the latest round of funding.
The Gurugram-based fintech company has plans to launch the Credit-on-UPI service for salaried employees in the upcoming months.
“SalarySe is simultaneously ensuring that issuing banks are lending responsibly by integrating with SalarySe’s unique collection and risk underwriting technology, effectively reducing the risk and pricing for unsecured and revolving credit products,” the company said in a statement.
It is also partnering with banks, HR-SaaS (Human Resource- Software as a Service) platforms, and employers for the launch.
“The National Payments Corporation of India’s (NPCI’s) state of the art technology coupled with SalarySe’s unique employer-linked credit model helps reduce fraud and collections risk on the revolving credit products. This allows us to bring access to the next 100 million Indians who desire the product but do not have access today,” said Piyush Bagaria, co-founder, SalarySe.
Saumeet Nanda, co-founder at the company, who oversees risk and compliance, added that reaching out to customers via employer-integration is a responsible method of expanding credit during a time when the Reserve Bank of India (RBI) has raised concerns about the growth of unsecured credit in the country.
“There has been increased scrutiny from the regulators on the expansion of unsecured credit. The model of reaching the consumer base through employer-integration is the most responsible method of expanding revolving credit as it solves for risk first. Combining the power of payments data and employment data allows us to build the most data-rich underwriting for our partner financial institutions,” he added.
“With one of the world’s largest economies, and the third-largest middle-class in the world, the lack of credit penetration presents great potential. SalarySe’s commitment to tapping into it while providing the most seamless digital journey possible to the customer and relying on the UPI-friendly market will set up its success,” Pravega Ventures’ spokesperson said.
