SalarySe’s credit on UPI app to go live in a few months

Gurugram-based fintech startup SalarySe plans to go live with its credit on Unified Payments Interface (UPI) application in the next few months. “We are in advanced stages of building the product. We should be able to go live in the next few months,” co-founder Piyush Bagaria said.

Earlier this week, SalarySe announced that it has raised $5 million in its first institutional funding round from Peak XV’s seed fund Surge and Pravega Ventures.

The company plans to offer credit to employees of mid-tier companies who are typically not served by traditional banks. It is looking to integrate with the human resources (HR) software used by these companies to tap into the salary data and offer credit to these consumers. Eventually, it will also build a virtual co-branded credit card on the application.

“We will also integrate with payroll systems and take a lien on somebody’s payroll. For a credit card, this means that the money can directly be deducted from somebody’s payroll when bills are due,” Bagaria said, adding that this process will help minimise default risks.

The company is particularly focusing on catering to customers in tier 2 and 3 cities. It plans to reach 1 million customers and `100-crore disbursements by the end of 2024.

Currently, the company is in the process of integrating one state-owned bank and one private sector bank onto its platform. “Currently, we are piloting the product with a few of our customers. We are expecting to reach out to 3,000-4,000 corporates. This will be a mix of small, medium and large,” he added.