Wagestream, a platform which enables employees to access their earned wages in real time, has completed a £20m Series B funding round.
The firm’s technology, which is being used by five NHS Trusts, Bupa, Rentokil, Kwikfit, Brewdog, Zizzi and Roadchef, enables their staff to access their earned wages as they are earned.
This latest investment takes the total raised by the firm to £65m. It will be used to consolidate the company’s market share in the UK and to fund its international expansion.
Early-stage venture capital specialist Northzone is leading the funding round with participation from QED Investors, Latitude Ventures and Balderton Capital.
Wagestream enables staff to draw down a percentage of their earned wages any day of the month for a £1.75 fee.
The offering has seen increased demand in the second quarter, as the firm reports employers sought to make their staff more financially resilient in the face of Covid-19.
Peter Briffett, CEO and Co-Founder, Wagestream, said ‘income streaming’ was a modern alternative to the monthly pay cycle.
“Each day, too many staff in too many companies are being forced into the hands of predatory payday lenders because they are only paid their earnings once every 30 days, enabling people to access their earned wages anytime keeps them out of debt and also incentivises them to do more shifts because they are motivated by the ability to use that extra income immediately to make specific purchases,” he said.