US firm Daily Pay has netted $500m in raised capital following a $175m Series D and $325m credit capital raise.
The Series D round was led by Carrick Capital Partners as well as participation from unnamed existing investors. The credit capital raise was raised from various undisclosed sources.
New York-headquartered DailyPay provides employees with real-time access to their wages whenever they need them. Having instant access to pay, enables consumers to pay bills on time and avoid late fees.
According to DailyPay, it intends to invest the newly raised funds in ‘new market oppurtunities’ for its technology platform and will seek to extend its market leadership position in on-demand pay among the largest employers globally.
DailyPay noted that 80% of the Fortune 200 companies offer an on-demand pay partner with DailyPay. Over the past year, DailyPay revenue climbed 141%. The company also released a range of new products and services, including tools to allow off-cycle payments and remit employee reward payments. DailyPay also introduced ExtendPX, a white-label solution for Payroll/HCM firms.
The company added that it saw ‘significant’ increases in usage over 2020 and remitted payments every single minute of the year to over 6,000 financial institutions across the US.
DailyPay CEO and founder Jason Lee said, “Since 2016, we have partnered with world-class employers to enable their employees to access or save their pay as they earn it,” “The initial application of our first-of-its-kind technology platform was to redefine how money moves between employers and their employees.
“We are now expanding our platform to change the relationship between merchants and their shoppers, as well as financial institutions and their customers. This platform enables us to create a new financial system by rewriting the invisible rules of money.”
Carrick Capital Partners co-CEO Jim Madden added, “We have seen the explosion in the on-demand pay industry, and how DailyPay has been leading the category. We chose to invest in DailyPay now because we believe they are only just beginning to respond to the enormous opportunity they have to provide on-demand pay solutions to global enterprises.”
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