ZayZoon, the financial empowerment platform for small and mid-sized businesses, has successfully secured a significant investment.
The company raised a total of $34.5m in its Series B funding. The investment round witnessed leadership from Framework Venture Partners. It also enjoyed co-investment from Export Development Canada (EDC), participation from ATB Financial, and contributions from existing shareholders.
A beacon for financial stability, ZayZoon’s primary offering is Earned Wage Access (EWA). EWA acts as a financial bridge for employees, particularly in a world where 63% of Americans are navigating the challenges of living from one paycheck to another. As an EWA provider tailored for SMBs, ZayZoon is positioned to support various sectors such as hospitality, retail, and food service. These industries, in particular, are grappling with the challenges of worker shortages.
The newly acquired funds are earmarked to bolster ZayZoon’s recruitment drives, fostering growth, and ushering in innovative advancements. Their objective is to fortify their commitment to fostering financial health and workplace engagement, especially for small and medium-sized businesses.
ZayZoon’s growth narrative is a compelling one, with the company witnessing a staggering 400% increase in payouts year-on-year. Their offerings have gained traction across various entities, from franchises such as McDonald’s and Dunkin’ to behemoths like Amazon Warehouses. This growth underscores a mounting demand for EWA solutions among the SMB audience.
The company has also augmented its payout options, introducing bank deposits, debit cards, and even fee-free alternatives like Gas Cards and Instant Gift Cards. 2023 marked a pivotal year for ZayZoon as they were distinguished as an ADP and PrismHR Marketplace Partner of the Year.
ZayZoon CEO Darcy Tuer said, “This financing will fuel our mission in being a true partner in financial health and workplace engagement to small and midsize businesses. Not only does ZayZoon act as a substantial competitive advantage for the business, but it helps the millions of Americans living paycheck to paycheck get by between paydays and plan for the future.”
Ajay Gopal, Partner at Framework Venture Partners, conveyed his enthusiasm, “ZayZoon is making a tangible, positive difference in the financial health and futures of their customers and families. We’re excited to partner with ZayZoon at such a pivotal time in the company’s history and look forward to supporting its continued growth and impact on the communities it serves.”
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