London, UK–April 13, 2022 | Wage flow, the charity-funded financial wellness app designed for frontline workers and built around pay, closed a $ 175 million Series C funding round as it prepares to increase support for disadvantaged and financially stressed workers outside the UK. The round, believed to be the largest ever raised for social impact fintech, includes a $ 60 million equity investment led by new Smash Capital investors, BlackRock-managed funds and accounts, and $ 115 million in debt financing from Silicon Valley Bank.
Historically, frontline workers have been excluded or forced to pay more for financial services than other workers. Research The University of Bristol shows that they pay an extra £ 490 premium each year for family and basic financial services, the equivalent of 14 weeks of grocery shopping. 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 services. fairer financials, delivered through their employer and based on their pay.
“When we launched Wagestream, many employers saw financial well-being in the workplace as a long-term aspiration; now they realize this is a national emergency, “said Peter Briffett, CEO and co-founder of Wagestream. For example, 93% of companies we recently interviewed plans to implement a financial welfare program, up from 51% just a year ago. By addressing the financial well-being of their employees, employers become the hero and solve their own HR challenges in the process: from recruiting, to retention, to productivity. “
Workers access Wagestream through employers in industries such as hospitality, healthcare and retail, which subsidize the service. With financial inclusion in mind, the app provides a variety of financial services to help them build their financial health over time. People can track their shifts and pay each day, choose their pay cycle, accumulate savings and win rewards, set money goals and chat with a personal financial coach, and get fairer deals on financial products, such as insurance, public services and credit for essential goods services – those they would have access to elsewhere.
The funding round is led by new investors Smash Capital, a US-based investment firm focused on internet and next-stage consumer technology companies. Smash’s previous investments include Epic Games, Reddit, SonderMind, and DuckDuckGo, among others. Smash’s founders previously led investments for The Walt Disney Company and major venture capital firms. The round also includes new investors, BlackRock, and new investments from existing shareholders Balderton Capital, Northzone, the Fair By Design charity fund, and new funding from Silicon Valley Bank.
“Financial exclusion and rising cost of living have created severe financial stress for hard working people around the world,” said Brad Twohig, Managing Partner of Smash Capital. “We invested in Wagestream because its team has reinvented the world of work to solve this problem, making it more inclusive and rewarding for millions of people.”
Originally launched in the UK, Series C capital will be used to build a broader set of fair financial services within the app and expand Wagestream’s growing teams outside of the UK. One million workers can now access Wagestream globally through over 300 employers in the US, UK, Spain and Australia.
Katie Duxbury, Head of Payroll Services at leading healthcare provider Bupa, which launched the app to its workforce in 2021, said, “Wagestream has been fantastic for our staff. Offering a range of wellness tools. financial backed by pay-based charities, we’ve been able to enable them to build better financial health, all managed through a smart app.
Partly owned by charities including Joseph Rowntree Foundation, Barrow Cadbury Trust, Trust in social technology, Big company capitaland the Fair for design fund, Wagestream is accountable to an Impact Advisory Board and reports on the social impact to its shareholders every quarter.
Emma Steele, Partner of Ascension, explains: “It is time for fintech companies to reach and include the 2.7 billion global employees at the forefront of a fair financial system. As a pre-seed supporter of Wagestream, we have witnessed the company’s rapid evolution from its proposition of flexible “beachhead” payment tools to a global expansion of fintech, bringing a wide range of tools for financial well-being. to over a million people and growing to an impressive scale. We are so proud of what the team continues to achieve – they are undeniable proof that purpose-oriented vision and commercial scale go hand in hand. “
The company places research, data and customer co-creation at the heart of its product roadmap and publishes a semi-annual impact assessment, which tracks the impact of its financial services on end customers. The application exceeds global benchmarks on financial inclusion established by the independent impact measurement company, 60 Decibels, with 77% of people reporting feeling less stressed and 72% having a better quality of life.
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Wagestream is the financial wellness app founded with charities, designed for frontline workers and built around pay. Offered by caring employers such as Bupa, Hilton, Halfords, Pizza Hut, Greene King, Co-op and NHS, it makes work more inclusive, equitable and rewarding for one million people by giving them access to fair based financial services on their salary.
Workers use Wagestream to choose their pay cycle, manage their budget, save for a rainy day, chat with a personal money coach, and get fairer deals on financial products, all in one app, with no payroll changes.
Wagestream is guided by a social charter: every service it provides must measurably improve financial well-being. Over 70% of people using Wagestream feel more in control of their money, which leads to a happier, healthier and more productive workforce.
Find out more about www.wagestream.com
Wagestream secures £ 133.98 million Series C investment from Smash Capital and Silicon Valley Bank – UK Technology Investment News
Source link Wagestream secures £ 133.98 million Series C investment from Smash Capital and Silicon Valley Bank – UK Technology Investment News