Financial wellness solution PayActiv bags $100m in its Series C round

Financial wellness platform PayActiv has bagged $100m in its Series C funding round to increase its customer base.

The capital round was led by Eldridge, with participation also coming from Generation Partners and the Ziegler Link Age Fund II.

Having secured the fresh equity, the company hopes to expand its customer base and providing additional benefits to its existing customers. Currently, the FinTech serves more than four million employees across 1,000 businesses.

The company recently completed a survey that found since the outbreak of the Covid-19 pandemic, 82% of workers are more worried about financial issues than their health. Furthermore, 58% have seen their expenses increase during the period.

PayActiv is a mobile app platform that enables employees to get early access to their earned wages. Users can also pay bills, book Ubers, pay online at various stores and send money to debit cards.

Additionally, users can access a selection of AI and machine learning-powered tools for financial wellness and budgeting.

PayActiv CEO and co-founder Safwan Shah said, of “American families are facing more financial stress than they have in generations.

“The timing gap between work and wages is the main reason workers get hit with punitive late fees, overdraft fees and other penalties. Cumulatively, these fees reduce wages by seven percent every month. The PayActiv platform is the only system where everyone wins: employers lift worker morale with little to no cost and huge dividends; employees get wages when they actually need them most; and cash re-enters the economy faster, making communities financially healthier.”

The company previously raised $20m in its Series B round in 2018, with backers including Generation Partners and Ziegler Link-Age Fund II.

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