Fintech startup EarlySalary buys CashCare to grow

BENGALURU: Pune-based fintech startup EarlySalary has acquired Mumbai-based checkout financing startup CashCare for an undisclosed amount. As a part of the deal, the CashCare founder will be joining the EarlySalary team.

EarlySalary, which is in the business of short-term loans for young people without any borrowing history, is planning to expand into the consumer-financing business with this deal. CashCare allowed its users to convert online purchases through their partner merchants into instant EMIs even without a credit card.

With this move EarlySalary will be directly competing with PayU-backed Zest Money.

“We have paid a small amount for the platform, rest we are getting the tech team of CashCare to join our company which is the biggest positive of this move,” said Akshay Mehrotra, founder of EarlySalary. “We also get all the merchant partners of CashCare with us through the acquisition which will help us scale up the product fast.”

CashCare founder Vikas Sekhri who is an alumnus from Wharton School will be heading products at EarlySalary. EarlySalary, which was just doing few thousand checkout loans for Big Bazaar, will now get to partner with CashCare merchants like ShopClues, Jabong, Byju’s, among many others.

EarlySalary claims to be processing around 25,000 loans per month at an annual disbursal run rate of Rs 600 crore. The company is targeting to reach 1 lakh disbursals within the next twelve months and an annual run rate of Rs 6,000 crore.