DailyPay secures $175m to expand on-demand pay solution
By Delisha Fernandes
DailyPay, an on-demand pay solution, has secured $175 million in funding, resulting in a 75% increase in the company’s valuation to $1.75 billion.
The funding is divided between $100 million of expanded secured credit facility capacity provided by Citi and over $75 million in equity financing.
“DailyPay’s employer-integrated on-demand pay platform is putting power back in the hands of the worker by allowing them to track, transfer, spend or save their pay as they earn it,” said Kevin Coop, Chief Executive Officer of DailyPay. “This latest equity capital raise, from both long-time institutional investors and new financial partners, underscores DailyPay’s strength and market-leading position. We are eager to capitalize on this momentum as we continue to revolutionize the future of pay.”
The equity financing from both existing and new investors, led by Carrick Capital Partners, will be deployed to further accelerate DailyPay’s continued product innovation and to drive its expansion into adjacent categories and new markets.
The additional $100 million expansion of the existing credit facility, provided by Citi, brings DailyPay’s revolving secured debt facility to $660 million, including the existing commitments of $500 million from Barclays and $60 million from TPG Angelo Gordon.
“DailyPay is excited to welcome Citi to our distinguished group of lenders and financial partners,” said Ken Brause, Chief Financial Officer of DailyPay. “The additional $100 million to our credit facility comes as we continue to rapidly add new clients and users to our platform and reflects the size, scale and trajectory of the business.”
FT Partners served as exclusive strategic and financial advisor to DailyPay on the equity financing transaction. Employers who offer DailyPay see positive impacts on hiring and retention. Users are empowered to take control of their earned pay, enabling them to pay bills on time while avoiding unnecessary fees associated with overdraft, high-interest credit products or payday loans.
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