Paywatch, a Maylasian earned wage access service provider, has raised $9m in a pre-Series A funding round to empower employees.
According to a report from Technode Global, the round was led by returning investor Third Prime.
The round also saw participation from Hana Ventures (the venture arm of Hana Financial Group in Korea), Parkwood Corp. and notably, the endowments of Vanderbilt University and University of Illinois Foundation.
Founded in 2020, Paywatch enables employees to access their earnings instantly, rather than waiting until payday.
The company works with major banks to provide its users with the necessary tools to improve their financial wellbeing, which the company said leads to greater employee retention and productivity.
Paywatch currently provides its services in Malaysia and South Korea.
Following the funding, the company said it plans to use the capital to grow its product offerings, strengthen its presence in existing markets, and accelerate expansion efforts into new markets, including the Philippines and Hong Kong where it expects to launch in 2023.
Michael Kim, partner at Third Prime, said, “The momentum Paywatch has generated in Malaysia this past year has been impressive, and it has served as a powerful proofpoint for how critical this product will be to improving financial opportunities and, ultimately, outcomes for workers.
“We are excited to continue backing the company as it accelerates its growth and impact throughout Southeast Asia.”
Travis Shore, chief investment officer of University of Illinois Foundation, added, “Given Southeast Asia’s large unbanked and underbanked population, there’s an urgent need for EWA solutions in the market. Paywatch has emerged with a vision for financial empowerment…Its early success is addressing wage-related issues and is also uniquely positioned to scale product and market expansion in a way that drives broader financial inclusion.”
Recently, InsureComFree, a Malaysia-based InsurTech firm, secured an investment from KT Cap Consulting or KTCC, a Singapore-based management consultancy firm.
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