Wagestream, a UK startup that lets customers draw down their 'earned income' at any time during the pay cycle, has closed a £15 million series A funding round, co-led by Balderton Capital and Northzone.
Wagestream launched in September last year, a week after Wonga went into administration, vowing to put an end to the payday poverty cycle by letting employees access their wages early.
The company launched with the backing of more than £4 million in funding from, among others, Village, a VC backed by big name tech billionaires such as Bill Gates and Jeff Bezos.
The Wagestream app shows each employee how much they have earned for each hour worked and lets them transfer these earnings instantly to their current account for a one-off fixed fee of £1.75. The money is then deducted from the next wage packet.
The company counts Camden Town Brewery, Slug & Lettuce and Carluccio’s, among others as customers.
Peter Briffett, CEO and co-founder, comments: “The feedback we are getting from private companies and public sector customers alike is that staff are happier, more productive and have greater financial security once they start using our service. The antiquated monthly pay cycle inflicts huge financial damage on household finances and its days are numbered.”
The latest raise was accompanied by a credit facility of up to £25 from Shawbrook Bank.