SalarySe, the pioneering Credit-on-UPI app, has successfully raised $5.25 million (INR 43.62 Crores) in its latest seed funding round. The funding was led by Peak XV Partner’s rapid scale-up program Surge, with participation from early-stage VC fund Pravega Ventures. This financial boost positions SalarySe to enhance its technological infrastructure for the financial management application, specifically focusing on the expansion of its credit-on-UPI feature across India.
The startup, founded in June last year by Mohit Gorisariya, Saumeet Nanda, and Piyush Bagaria, is set to introduce the credit-on-UPI system for salaried employees in the coming months. Collaborating with banks, HR SaaS platforms, and employers, SalarySe aims to make financial management more accessible to the salaried class.
SalarySe’s unique approach involves integrating with the payroll systems of companies to offer revolving credit on UPI. Leveraging a lien on salary for repayments, the startup strategically reduces credit risks. Mohit Gorisariya, the co-founder, emphasized the current focus on key sectors such as information technology, manufacturing, and sales-led industries, including FMCG and consumer durables.
Saumeet Nanda, another co-founder, explained, “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.”
The National Payments Corporation of India (NPCI) introduced the credit line on UPI feature in the past year. This feature enables users to pay for transactions through pre-sanctioned digital credit lines from banks within the UPI network. In September, the Reserve Bank of India (RBI) granted scheduled commercial banks the authority to provide credit lines to customers through the Unified Payments Interface (UPI).
SalarySe’s successful funding round aligns with the growing interest among investors in startups offering similar credit-on-UPI services. Notably, Kiwi, a credit card management solutions startup, secured $13 million in pre-Series A funding in November last year, with plans to expand its ‘credit cards on UPI’ offerings nationwide. Additionally, several fintech startups, including Jupiter, Freo, and PayU, are actively collaborating with banks to provide credit lines on UPI for their users.
