DailyPay secures $500 mn in capital to build a new financial system

By Pavithra R

New York-based DailyPay, a provider of the on-demand pay benefit, has announced securing $500 mn in capital.

The firm is announcing a $175 mn Series D equity round led by Carrick Capital Partners with participation from existing investors. Additionally, the company has raised $325 mn of credit capital from various sources.

“Since 2016, we have partnered with world-class employers to enable their employees to access or save their pay as they earn it. The initial application of our first-of-its-kind technology platform was to redefine how money moves between employers and their employees. We are now expanding our platform to change the relationship between merchants and their shoppers, as well as financial institutions and their customers. This platform enables us to create a new financial system by rewriting the invisible rules of money,” said Jason Lee, Chief Executive Officer and Founder of DailyPay.

The FinTech is planning to invest the new capital in new market opportunities for its technology platform, besides extending its market leadership position in on-demand pay among the largest employers in the world.

“We have seen the explosion in the on-demand pay industry, and how DailyPay has been leading the category. We chose to invest in DailyPay now because we believe they are only just beginning to respond to the enormous opportunity they have to provide on-demand pay solutions to global enterprises,” said Jim Madden, Co-CEO of Carrick Capital Partners.

The firm has announced reaching a number of key milestones over the last 12 months including revenue growth by 141%; increases in usage; the release of new suites of products and services that benefit employers, including tools to enable off-cycle payments and remit employee reward payments. Additionally, DailyPay launched ExtendPX, its proprietary white-label solution for Payroll/HCM companies. They also continued to drive the shaping of the regulatory environment, including signing a Memorandum of Understanding with the State of California.