Wagestream, the fintech that enables employees to access their earned wages in real time, has completed a £20 million series B funding round.
The investment, which takes London-based Wagestream‘s total raised to £65 million, will be used to consolidate its market share in the UK and fund its international expansion.
Early-stage venture capital specialist Northzone led the funding round, with participation from QED Investors, Latitude Ventures and Balderton Capital.
Wagestream’s earlier stage investors include The Joseph Rowntree Foundation through the Fair By Design Fund, QED Investors, the London Co-investment Fund, and Bill Gates- and Jeff Bezos-backed venture capital firm Village Global.
Wagestream, which enables staff to draw down a percentage of their earned wages any day of the month for a flat £1.75 fee, has seen demand for its product increase among major UK brands over the past year.
New client sign-ups were particularly strong in Q2, as employers sought to make their staff more financially resilient in the face of the coronavirus (Covid-19) pandemic.
The latest brands and organisations to embrace income streaming include Honest Burgers, SA Brain, Fuller’s and two National Health Service (NHS) trusts.
Through its Safestream savings product, Wagestream also enables users to put aside a small amount of their pay before it is paid to them
Peter Briffett, chief executive officer and co-founder of Wagestream, commented: “Where people work and how they work is changing by the day, all the more so since Covid-19 struck. Now the way in which people get paid is changing, too, and at scale. Wagestream provides a financial flexibility that is perfectly suited to today’s agile and progressive workforce.”
Jeppe Zink, partner at Northzone, added: “Income streaming is a unique innovative financial solution that improves people’s lives and there is no doubt that, in the future, Wagestream will become as important as any other benefits like healthcare. The increasing popularity of income streaming, and the way that employers are fast getting wise to how they benefit hand in hand with their staff, is tracking the trajectory we all expected to see, which is outstanding progress.”