Voluntary benefits platform ZayZoon has raised $25.5m in a mixture of debt and equity.
The company raised $12.5m in equity, which was led by Carpae Investments and Alpenglow Capital.
InterGen Capital, Prairie Merchant Corporation, also joined the round. As did angel investors Hopewell founder and executive chairman Sanders Lee and Maillot Homes president Rob Ohlson, among others.
The remaining $13m was a credit facility provided by ATB Financial.
With the capital, ZayZoon will expand its product offering with new products and services that improve financial outcomes and wellness of employees. The company will also hire staff for key roles.
ZayZoon is used by 3,000 businesses in the US to offer employees quicker access to pay.
Its flagship product Wages On-Demand gives employees access to wages that they have earned but would normally have had to wait until payday to receive. An employee can sign up and access earned wages instantly for little or no cost.
Businesses partner with ZayZoon to improve their employee recruitment, retention and overall workplace productivity. It boasts over 100 payroll integrations and 60% of businesses can activate the service in under an hour.
McDonald’s, Burger King, Senior Helpers and Choice Hotels use ZayZoon.
Alpenglow principal Marcos Lopez said, “ZayZoon has proven the value it can bring to millions of employees and their employers through a unique distribution channel. We are excited to see the team continue their impressive growth and the use of their product by more employees and employers, helping them efficiently access their earned wages more effectively.”
Tapcheck is another FinTech company offering early access to earned wages. It recently raised $20m in its Series A.
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