Credit-on-UPI Startup SalarySe Raises $5.25M in Seed Funding

• ByStartupStory     |    January 10, 2024

SalarySe, a startup specializing in revolving credit on UPI (Unified Payments Interface) through integration with firms’ payroll systems, has secured $5.25 million (INR 43.62 crore) in its seed funding round. The funding was led by Peak XV Partner’s Surge rapid scale-up program, with participation from Pravega Ventures, an early-stage VC fund.

The fresh capital injection is earmarked for enhancing SalarySe’s technology stack for its financial management application, which leverages credit-on-UPI, and for driving its adoption across India. The startup also plans to introduce its credit-on-UPI system for salaried employees in the coming months, with partnerships already in place with banks, HR SaaS platforms, and employers.

Established in June last year by Mohit Gorisariya, Saumeet Nanda, and Piyush Bagaria, SalarySe is focused on sectors such as information technology, people services, manufacturing, and sales-led sectors like FMCG and consumer durables. It integrates with employers’ systems to offer revolving credit on UPI and employs a lien on salary for repayments to mitigate credit risks.

According to Gorisariya, the integration with employers is a responsible method of expanding revolving credit, prioritizing risk management. Nanda emphasized the potency of combining payments data and employment data to craft robust underwriting solutions for partner financial institutions.

The National Payments Corporation of India (NPCI) introduced the credit line on UPI feature last year, enabling users to make transactions through pre-approved digital credit lines from banks. In September, the Reserve Bank of India (RBI) authorized scheduled commercial banks to extend credit lines to customers via UPI.

The funding secured by SalarySe underscores the growing investor interest in startups offering similar services. In November last year, Kiwi, a startup specializing in credit card management solutions, raised $13 million in a pre-Series A funding round, with plans to expand its ‘credit cards on UPI’ offerings nationwide. Other fintech startups like Jupiter, Freo, and PayU are also actively collaborating with banks to facilitate credit lines on UPI for their users.

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