Payroll verification startup Paywallet raises $14 million

Florida-based Paywallet closed a $5 million Series A round, bringing its total funding to $14 million.

The Series A funding round has been led by a new investor Pasaca Capital, a private equity investment firm based in Pasadena, CA. Investors in the previous rounds, PruVista Capital, a Jacksonville, FL-based specialty finance investment company, and Arcadia Funds, a Burlington, MA-based fintech-focused investment manager also participated in this Series A funding round.

Founded in 2021, the company is a full life-cycle payroll-linked SaaS platform that provides easy-to-integrate APIs for its clients for various lending journeys. It places the borrowers in control of sharing their employment, financial records, and identity data for credit decision-making. Lenders and other institutions can leverage Paywallet’s technology to verify employment and bank information and establish payroll-driven remittance instructions for their customers. This enables them to expand access more easily to those consumers who rely on their verified source of income as proof of their ability to pay.

“We are excited to partner with our valued investors to bring comprehensive payroll-linked payment and identity software-as-a-service (SaaS) solutions to lending and fintech companies, enabling disruptive models of responsible credit decisioning and predictable repayments. The new funding will allow us to accelerate our growth and bring web 3.0 paradigms to lending, changing the way customer data is accessed and used for making credit decisions and, in the process, democratize access to affordable credit for all. Annually more than $10 trillion of funds move through paychecks. Paywallet aims to enable these funds as a secure payment option for any ongoing contractual obligation like leases, loans or buy now pay later (BNPL) transactions.” – DK Sharma, CEO of Paywallet.

Sharma was previously the Chief Information Officer (CIO) of Citigroup International where he led the development of technology to support both payroll-linked lending and short-term financing offerings across various markets. Paywallet was incubated by Pruvista Capital LLC.