Wagestream raises £17.5m to enhance financial services for frontline workers

Wagestream, a pioneering FinTech company, has successfully secured a £17.5m investment in a recent funding round.

According to Business Cloud, this significant financial infusion features contributions from British Patient Capital, a major domestic investor in venture opportunities and a subsidiary of the British Business Bank, Lombard Odier Investment Managers, and Northzone, an existing investor.

The company, founded in 2018, has made remarkable strides in addressing the financial disparities faced by low and middle-income households. These groups often pay a hefty £430 ‘premium’ for essential services, penalised by high street providers with inflexible and expensive products, or excluded altogether.

Wagestream’s innovative platform is currently utilised by 1,000 employers across the UK, Spain, and the United States. It empowers around three million users, predominantly shift and frontline workers, enabling them to interact with their payslips, choose their payday, save directly from their earnings, reduce bills, and access free debt advice. This comprehensive support structure is part of what makes Wagestream a vital service for its users.

The newly acquired funds will be directed towards expanding Wagestream’s range of services, aiming to establish a complete financial platform for its users. The expansion plans for this year include introducing a credit-builder card, shopping discounts to mitigate the effects of inflation, AI-driven financial coaching, and fair-priced loans—all designed to support those traditionally neglected by the financial sector.

Additional insights from the company highlight the broader impact of Wagestream’s services. “Do frontline workers not deserve choice? Do frontline workers – who keep essential services running in good times and tough times – not deserve a better financial future?” Peter Briffett, co-founder and CEO of Wagestream, passionately inquired. He emphasized the collective effort of over 1,000 employers who support the platform’s mission to bridge the financial gap, enhancing workplace satisfaction and home life quality, which in turn benefits business through healthier, more productive teams.

Echoing this sentiment, Ian Connatty, managing director of direct & co-investment at British Patient Capital, remarked on the rapid growth and focused mission of Wagestream. “The potential to provide critical financial tools to underserved, overlooked frontline and shift workers is huge. We’re thrilled to be backing the business as it continues expanding its range of fair financial products and services in the UK and beyond,” he added.

Previously, Wagestream had also attracted investments from notable social impact funds such as Big Society Capital, Social Tech Trust, and Fair By Design, further supporting its mission to offer equitable financial solutions.

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