Credit-on-UPI platform SalarySe announces $5.25 mn seed funding

SalarySe, a financial management application that leverages the Credit-onUPI system to help salaried employees, has announced $5.25 million in seed funding led by Surge, Peak XV’s rapid scale-up program, and Pravega Ventures.

The funding will help SalarySe in developing its technology stack for Credit-on-UPI and drive adoption of the product in India.

Less than four per cent of Indians have access to a credit card, making the country’s revolving credit market among the lowest penetrated in major economies. Comparatively, revolving credit penetration in economies like the

USA and China is upwards of 70 per cent and 40 per cent respectively. However, Crediton-UPI adoption is expected to increase revolving credit adoption significantly in India given high merchant adoption of UPI pan India.

Leveraging this growth trend, SalarySe is making revolving credit accessible for middle class Indians by combining the user-friendly interface of UPI with the flexibility of credit through its Credit-onUPI technology.

The company is simultaneously ensuring that issuing banks are lending responsibly by integrating with SalarySe’s unique collection and risk underwriting technology, effectively reducing the risk and pricing for unsecured and revolving credit products.

SalarySe aims to help more than 100 million salaried employees in India spend, save, invest and plan their salaries smartly and reduce financial stress in their lives. The company will launch the Credit-on-UPI system for salaried employees in the next few months.

Piyush Bagaria, Co-founder at SalarySe, said: “UPI has seen unprecedented acceptance amongst both merchants and retail consumers across India, which makes it the right technology platform to deepen credit penetration for the middle class.”