DailyPay, an on-demand payment platform to help America’s workforce have more control of their finances, has netted $260m in funding.
The funding will enable DailyPay to bolster its domestic growth, as well as expand internationally. Capital has also been earmarked for product innovation.
This investment is divided between a revolving credit facility capacity from Barclays and Angelo Gordon and a new term loan funding from SVB Capital and a fund managed by Neuberger Berman.
The capital injection is split, $100m from Barclays, $60m through Angelo Gordon and $100m in term loan funding from SVB.
DailyPay previously announced a $300m revolving credit facility from Barclays in March 2022.
The on-demand payment platform is designed so companies can empower their workforce, as well as foster stronger relationships with them. Its mission is to create a new financial system for everyone.
Through earned wage access, employees can get early access to their earned pay. DailyPay’s most recent feature is the Friday Visa prepaid card and app. This gives employees instant, no-fee access to their earned pay.
Its services are used by several Fortune 500 companies, including Hilton, Target, Kroger and Dollar Tree.
DailyPay CEO Kevin Coop said, “On-demand pay has proven to be a transformational financial wellness benefit for employers and their employees, and DailyPay is the proven market-leader. Now, our opportunity lies in capturing more of the market, which is overwhelmingly vast green space.
“Our track record of trust and investment from the world’s leading financial institutions validates our business model and path forward. This latest funding further propels us to a position of strength.”
Latham & Watkins advised DailyPay on the financing transactions.
Just five months ago DailyPay named Kevin Coop as its CEO. During this tenure, Coop has ‘significantly’ grown the FinTech’s client roster and revenue.
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