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, involving some existing investors, according to the source, who declined to be named as the talks are private.
EarlySalary, which competes with LoanTap and PaySense, offers short-term personal loans of up to 500,000 rupees (about $6,319) through its mobile app and corporate partnerships.
TPG and EarlySalary declined to comment, while Norwest did not respond to a request for comment.
Cheap internet subscriptions and an increase in online payments have boosted the Indian fintech industry, leading to a spurt of startups offering direct loans through a mobile app.
Globally, digital lending has also attracted large dollars. Investors poured nearly $21 billion into the sector last year, a record high and about 90% higher than the year before, according to CB Insights, which tracks private investment.
Founded in 2015 and backed by Chiratae Ventures and Eight Roads Ventures, EarlySalary raised $15.7 million in January 2018 in a round of funding.
The new funding talks are taking place as India’s central bank drafts rules for digital lenders following cases of intimidation and breach of creditors’ privacy 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 loan repayments.