Wagestream raises £135m to give frontline workers early access to wages
Wagestream, a financial support app for workers, has raised £135m in a Series C funding round led by Smash Capital.
The London-based company is giving frontline workers early access to up to 50% of their accrued wages.
The app aims to give employees greater control over their finances with a series of services, including options to directly invest part of their salary in stocks, control options to help save money and access to financial coaches to give advice.
Founded in 2018, Wagestream will use the latest funding boost to continue adding features to its app, as well as fuel an expansion into the US market.
On-demand payroll has become an increasingly popular option for employees, especially after the economic turmoil and uncertainty caused by the Covid-19 pandemic.
A study by accounting firm EY found that 80% of workers would use on-demand pay if given the opportunity.
Wagestream co-founder and CEO Peter Briffett has described the state of employees’ financial wellbeing in the UK as “a national emergency” and said employers could “become the hero” in solving the problem through increased financial control.
Wagestream has placed particular emphasis on financial support for frontline workers, due to the hardships they have faced during the pandemic.
“Financial exclusion and the rising cost of living have created severe financial stress for hard-working people around the world,” said Brad Twohig, managing partner at Smash Capital.
“We invested in Wagestream because its team redesigned the world of work to address this issue, making it more inclusive and rewarding for millions of people.”
Since the company was founded, more than one million workers worldwide in the retail, hospitality and healthcare industries have accessed the Wagestream app.
Wagestream’s previous funding rounds include a £15m Series A in 2019 and a £20m Series B in 2020.