Activehours pockets $22m for paycheck app

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fintech insurtech wealthtech regtech ai cybertech esg news

Consumer financing app Activehours has raised $22m in a new round of funding led by Martix Partners.

Funding for the Palo Alto company also comes from March Capital Partners, Ribbit Capital and Felicis Ventures.

The company’s mobile app aims to provide employees with payment for the hours they have already worked when they need it, ahead of their usual pay cycle.

Activehours’ app is available to anyone with a checking account regardless of their employer.

It also does not charge a fee or interest for the service instead requesting users pay a tip of their choice.

The funding follows strategic integration with Uber and a retail partnership with Sears Holdings.

Activehours’ founder Ram Palaniappan said: “With today’s technology, we can actually pay people faster than daily.

“When you shop, you pay at once. When you go out to eat, you pay at once. But when you work, you wait two weeks to get paid. Activehours is a better way to get paid, and people are taking notice.”

The company says it now works with employees from more than 12,000 companies since launching in 2014.

The new funding will be used to expand Actiuvehour’s team and drive growth.

Matrix Partners general partner Dana Stalder said: “People want to be assured they can access payment for completed work hours at a price that will always work for them.

“Activehours relieves stress and financial strain in an innovative way, and we are excited to help the company scale to help more workers.”

The startup previously raised $4.1m in a 2014 seed round led by Felicis Ventures and Rabbit Capital.

Copyright © 2017 FINTECH GLOBAL

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