Consumer lending platform EarlySalary has raised $110 million at a $300 million valuation in its most considerable funding round, led by TPG’s The Rise Fund and Norwest Venture Partners.

The Series D is a mix of primary and secondary share sales, with investment from existing investors Piramal Capital & Housing Finance Limited. The company plans to use the proceeds from the fundraiser to expand its business over the next 24 months.

Founded in Pune in 2015 by Ashish Goyal and Akshay Mehrotra, EarlySalary provides working professionals with loan solutions of up to Rs 5 lakh. Goyal was a chief investment officer at Bajaj Allianz General Insurance before founding EarlySalary, while Mehrotra was chief marketing officer at retail chains Big Bazaar and Policybazaar.

EarlySalary provides Buy Now Pay Later (BNPL) services to a client base in the education, health and consumer goods financing sectors. It said it had disbursed nearly 2.8 million loans worth Rs 7,500 crore.

The company’s last funding round was in 2019 when it raised $34 million from Eight Roads, Chiratae Ventures, Piramal Capital & Housing Finance Limited and angel investors.

Over the past six months, EarlySalary has added key executives across risk, sales, finance and other functions to strengthen its management team. The company has expanded its presence from 18 cities to more than 150 cities and expanded its customer base to 12 million app downloads and approximately 1 million customers.

Previously, the Reserve Bank of India (RBI) on June 20 clarified to fintech firms that loading credit lines into prepaid payment instruments (PPIs) such as prepaid cards and wallets was prohibited. Following the clarification, EarlySalary suspended lending through its card.

The RBI also approved 12 guidelines for digital lending on August 10. According to the specification, loans and repayments can only be made between the bank accounts of the lender and the consumer without any transfer or pooling account (LSP) from the lending service provider or any third party.

“Based on the RBI’s recent digital guidance, EarlySalary believes that the ecosystem is also creating an innovative and constructive environment to expand its digital footprint and approach to digital banking. EarlySalary aims to expand its business across verticals and reach hundreds of 10,000 target customers,” EarlySalary said.