Paywatch, a Malaysian company that offers earned-wage access services, has secured $30 million in a Series A fundraising round using a combination of credit facilities and equity.
Leading the $14 million financing round were US investors Vanderbilt University and the University of Illinois Foundation, along with returning investor Third Prime. Wooshin Venture Investment Corp. and Octagon Venture Partners became new investors as well.
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The remaining US$16 million loan facility was provided by prominent international institutions, such as Citi.
Along with the company’s other innovation initiatives, a sizeable chunk of the funding will be utilised to improve Paywtach’s embedded financial services even more.
The Korean brothers Alex and Richard Kim, a former Senior Vice President of HSBC in South Korea and Country Manager of MasterCard Prepaid, created Paywatch in 2020.
As it is earned and before the conclusion of their payment cycle, employees can instantly receive a portion of their accrued compensation with the startup’s debt-free EWA solution, also known as on-demand pay.
In order to deliver the solution, Paywatch has partnered with top Asian businesses, such as Park Hyatt, DFI Retail Group (which includes Guardian), KFC, Pizza Hut (a division of QSR Brands), Wilmar International, PayNet, CGV theatres, Lotus’s, Jaya Grocer (a Grab affiliate), significant BPO centres, and manufacturing firms.
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The business claims that over US$58 million in salaries have been processed through its system to date, and it has raised its payouts to about US$8 million each month, climbing as much as 15% month over month.
See Also: Paywatch secures US$9M for growth in the Philippines and Hong Kong Paywatch currently has assistance from Citi, UOB, Hana Bank, Hong Leong Bank, and South Korea in addition to operating in Malaysia, Indonesia, and the Philippines.
By the end of the year, the company hopes to have paid out well over US$120 million in wages, more than doubling its lifetime total.
A pre-Series A fundraising round headed by Third Prime, which included participation from Hana Ventures, Parkwood Corp., the endowments of Vanderbilt University, and the University of Illinois Foundation, netted Paywatch US$9 million in December 2022.
In a seed fundraising round earlier that year, Third Prime and anonymous family offices in Singapore and Hong Kong helped raise US$5.25 for the company. Participating companies included SparkLabs, Won & Partners, and CTK Investments.
About Paywatch
Leading provider of Earned Wage Access services, Paywatch gives workers more financial security and empowerment.
