Wagestream Announces $175 Million Investment Round
A FinTech platform aimed at helping workers improve their financial health has raised a significant investment for itself. This week, Wagestream announced it had raised a total of $175 million as part of its latest funding round. The Series C includes a $60 million equity component led by Smash Capital — a U.S.-based firm that counts Epic Games, Reddit, and DuckDuckGo among its prior investments. BlackRock, Balderton Capital, Northzone, and Fair By Design also participated in the round. Additionally, Silicon Valley Bank provided $115 million in debt financing as part of the deal. To date, Wagestream has now raised a total of more than $250 million, which includes a €20 million Series B in 2020 and a £15 million Series A in 2019.
Originally launched in the United Kingdom, Wagestream offers a platform that helps employees manage their finances and access financial services. Among the features noted by the company is the ability for workers to track their shifts and pay, build savings and win prizes, take advantage of free financial coaching, and more. With the investment, the company intends to increase its presence in new markets including the United States.
Currently, more than a million workers employed by 300 companies across the U.S., U.K., Spain, and Australia have access to Wagestream services. That figure includes more than 250,000 workers in the U.S., with employers such Burger King, Pizza Hut, and others already implementing the service.
Speaking to the idea and need for Wagestream, co-founder and CEO Peter Briffett said in a statement, “When we launched Wagestream, many employers viewed financial wellbeing in the workplace as a long-term aspiration; now they realize it is an emergency. For example, 93% of companies we recently surveyed plan to put a financial wellbeing program in place, and we’re seeing a similar shift in the U.S.” Briffett continued, “By addressing the financial wellbeing of their employees, employers become the hero and solve their own HR challenges in the process – from recruitment, to retention, to productivity.”
Smash Capital managing partner Brad Twohig said of Wagestream, “The combination of financial exclusion and a rising cost of living have created severe financial stress for hard-working Americans. We’ve invested in Wagestream because its team has reimagined the world of work making it more accessible and rewarding for millions of people.”
Wagestream’s Series C comes as FinTech funding is having another big year, posting the best first-quarter total according to CB Insights. Additionally, the company represents a growing trend in FinTech, which is helping to find new solutions for workers to access their pay more easily while also improving their financial knowledge. With Wagestream already showing significant growth in the U.S. and other markets, there’s no doubt that this latest funding will help propel the service even further and expand its reach.