Total amount raised
$281 Millions
Latest funding date
January, 2023
Location
DailyPay has successfully raised significant funding through multiple rounds, with its latest being a debt financing round. The company offers an earned wage access platform designed to improve financial wellness for employees.
Keep reading to explore the intricacies of DailyPay's fundraising journey and the investors backing this innovative platform.
What Is DailyPay?
DailyPay, founded in 2015 by Jason Lee and Robert Law, is headquartered in New York, New York. The company specializes in providing an earned wage access platform that allows employees to access their earned wages before payday.
With a workforce of 501-1000 employees, DailyPay aims to enhance financial wellness, engagement, and retention among employees. Their platform is designed to help America's top employers build stronger relationships with their workforce.
DailyPay's innovative solutions have positioned them as a leader in the WorkTech industry, offering voluntary benefits that motivate employees to work harder and stay longer on the job.
How Much Funding Has DailyPay Raised?
- Debt Financing
- Amount Raised: $300M
- Date: March 2022
- Lead Investors: Barclays Corporate Banking
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support DailyPay's growth and ensure the company can continue offering its earned wage access solutions effectively.
- Debt Financing
- Amount Raised: $260M
- Date: January 2023
- Lead Investors: Barclays Corporate Banking
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide DailyPay with the necessary funding to service its expanding client base.
- Series D
- Amount Raised: $175M
- Date: May 2021
- Lead Investors: Carrick Capital Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To fuel the company's expansion and enhance its platform capabilities.
- Debt Financing
- Amount Raised: $325M
- Date: May 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support DailyPay's rapid growth and ensure the company can continue offering its services effectively.
- Debt Financing
- Amount Raised: $100M
- Date: January 2024
- Lead Investors: Citi
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide DailyPay with significant funding to service its growing roster of clients.
- Venture Round
- Amount Raised: $75M
- Date: January 2024
- Lead Investors: Carrick Capital Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's growth and enhance its platform capabilities.
- Debt Financing
- Amount Raised: $100M
- Date: October 2024
- Lead Investors: Citi
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To ensure DailyPay can continue to offer its earned wage access solutions effectively.
Total Amount Raised: $1.335B. Current Valuation: Not publicly disclosed.
Key Investors
- Barclays
- Details: Barclays is a British multinational investment bank and financial services company. It provides a wide range of services including retail banking, credit cards, corporate and investment banking, and wealth management.
- Investment Focus Areas: Investment banking, wealth management, personal banking.
- Notable Investments: Technology, finance, healthcare sectors.
- Citi
- Details: Citi, or Citigroup, is an American multinational investment bank and financial services corporation. It operates in over 160 countries and jurisdictions, providing a broad range of financial services.
- Investment Focus Areas: Investment banking, financial services, wealth management.
- Notable Investments: Fintech, real estate, consumer banking sectors.
- TPG Angelo Gordon
- Details: TPG Angelo Gordon is a global alternative investment firm. It specializes in credit, real estate, and private equity investments.
- Investment Focus Areas: Credit, real estate, private equity.
- Notable Investments: Real estate, credit, private equity sectors.
- Carrick Capital Partners
- Details: Carrick Capital Partners is a private equity firm that focuses on investing in technology-enabled businesses. The firm aims to help companies scale and achieve operational excellence.
- Investment Focus Areas: Technology, healthcare, business services.
- Notable Investments: Infinia ML, Mavenlink, InstaMed.
- Barclays Corporate Banking
- Details: Barclays Corporate Banking is a division of Barclays that provides financial services to large corporations and institutions. It offers a range of products including loans, trade finance, and treasury solutions.
- Investment Focus Areas: Corporate banking, trade finance, treasury solutions.
- Notable Investments: Various sectors including technology, finance, and healthcare.
What's Next for DailyPay?
DailyPay stands at the cusp of significant growth opportunities, bolstered by a $760 million revolving secured debt facility. This financial backing, including $200 million from Citi, positions DailyPay to expand its earned wage access services to a broader range of employers and employees. The company aims to leverage this funding to enhance its technology platform and introduce new features, thereby strengthening its market position.
Future fundraising opportunities appear promising, with potential for further credit commitments from existing and new financial partners. As the demand for financial wellness solutions grows, DailyPay is well-placed to attract additional investments to support its expansion. However, the company must navigate challenges such as regulatory changes and competition from other worktech firms, ensuring it maintains service quality while scaling operations.
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