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£ 133 million to scale the US financial well-being app

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A charity-funded financial wellness app designed for frontline workers has closed a £ 133 million Series C funding round.

London-based Wagestream will increase support for disadvantaged and financially stressed workers across North America and beyond.

Historically, frontline workers have been excluded or forced to pay more for the financial services they need than those earning a fixed salary or higher wages.

With a social charter at its core, Wagestream was founded in 2018 by Peter Briffett (CEO), Portman Wills (CTO) and a group of major financial charities to address this issue by giving people access to a range of financial services. fairer, provided through their employer and built around flexible pay.

“When we launched Wagestream, many employers saw financial well-being in the workplace as a long-term aspiration; now they realize it’s an emergency, ”Briffett said.

“For example, 93% of the companies we surveyed recently plan to have a financial wellness program in place, and we are seeing a similar change in the United States.

“By addressing the financial well-being of their employees, employers become the hero and solve their own HR challenges in the process, from hiring to retention to productivity.”

Workers access Wagestream through participating employers, who subsidize the service. The app syncs with payroll systems and allows employees to access and manage their income, either directly through the app or as an integration with workforce management technology partners.

Additionally, with financial inclusion in mind, the app offers users a variety of financial services to help them build their financial health over time. For example, people can choose how often they are paid, track their shifts and pay each day, accumulate savings and win rewards, access free financial coaching, and get fairer deals on products, such as insurance and public services, than those they would have access to elsewhere.

The funding round is led by new investor Smash Capital – a US-based investment firm that has previously backed Epic Games, Reddit, SonderMind and DuckDuckGo – includes another new investor in BlackRock and joins subsequent investments from existing shareholders. Balderton Capital, Northzone, Fair By Design charity fund and new funding from Silicon Valley Bank.

“The combination of financial exclusion and rising cost of living has created severe financial stress for hard-working Americans,” said Brad Twohig, managing partner of Smash Capital. “We invested in Wagestream because its team has reinvented the world of work by making it more accessible and rewarding for millions of people.”

More than a million workers in industries such as retail, hospitality and healthcare are currently able to use the app through employers including Burger King, Pizza Hut, Crate & Barrel, Bupa, and NHS. The company now works with 300 employers in the US, UK, Spain and Australia.

£ 150 million to fuel UK FinTech’s US expansion

Partly owned by financial charities and impact funds including the Joseph Rowntree Foundation, Barrow Cadbury Trust, Social Tech Trust, Big Society Capital and the Fair By Design fund, Wagestream operates under a social charter written in the charter of the agency.

The card ensures that the company can only offer financial services that improve the financial well-being of workers. All of Wagestream’s investors, including participants in the new Series C round, accept such a social card, which means that it cannot prioritize growth and profit over the well-being of end customers.

Wagestream is the only financial wellness provider known to adhere to these standards.

£ 133 million to scale the US financial well-being app

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