DailyPay, a provider of on-demand pay solutions for enterprises, has secured $500 million of capital.
The company has completed a $175 million series D equity round led by Carrick Capital Partners, with participation from existing investors. It has also raised $325 million of credit from various sources.
DailyPay intends to invest this capital in new market opportunities for its technology platform, in addition to extending its market position in on-demand pay among the largest employers in the world.
Jason Lee, chief executive officer and founder of DailyPay, says: “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.”
With this round of financing, DailyPay has welcomed a new investor in Carrick Capital Partners. Lee said: “We are thrilled to welcome Carrick as a new partner and to our board of directors. The team at Carrick has a demonstrable record of helping companies to scale exponentially and enter the public markets. We are excited to leverage their expertise at this pivotal time of opportunity for DailyPay.”
Jim Madden, co-chief executive officer of Carrick Capital Partners, added: “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.”
Scot Parnell, chief financial officer at DailyPay, said: “This financing package creates a fortress balance sheet that we can deploy on behalf of employers and their employees. The on-demand pay industry requires an exceptionally well-capitalised balance sheet to ensure the highest degree of service delivery, reliability and trust.”
Eighty percent of Fortune 200 companies that offer on-demand pay partner with DailyPay. Over the last 12 months, the company has reached a number of key milestones. It grew revenue by 141% in 2020 and released a suite of new 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/human capital management companies.
DailyPay saw significant increases in usage in 2020, remitting payments every single minute of the entire year, to more than 6,000 different financial institutions in the US.