Wagestream goes mainstream
Wagestream, which enables employees to access their earned wages in real time, announced a £20 million Series B funding round led by Northzone, with participation from QED Investors, Latitude Ventures and Balderton Capital. This latest investment – which takes the total raised to £65 million – will be used to consolidate “the company’s dominant market share in the UK” and to fund its international expansion.
Founded in 2018, Wagestream is offered as an employee benefit, giving employees the option to draw down a percentage of their earned wages any day of the month for a flat £1.75 fee. The startup has seen demand for its product “skyrocket” among major UK brands over the past year and new client sign ups were particularly strong in the second quarter, as employers sought to make their staff more financially resilient in the face of Covid-19.
Additional Wagestream features include financial education and a savings product that enables users to put aside a small amount of their pay before it lands in their checking accounts.
“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.” – Jeppe Zink, Partner, Northzone.
“Wagestream is building an iconic, trusted brand in the emerging ecosystem of ethical financial services providers. It speaks to today’s consumer who demands apps that empower them through true alignment. Employers are quickly expanding their understanding of their responsibilities towards employee welfare – Wagestream supports this by enabling employees to avoid high-cost debt. We see income streaming as a default setting for tomorrow’s employers and the perfect tool to boost employees’ financial resilience at all points in the financial cycle, but especially those that could lie ahead.” – Julian Rowe, partner, Latitude Ventures.
“Wagestream has gone from strength to strength since the last round and so, for us, doubling down was an easy decision to make. The feedback from employers and employees alike is positive across the board and the number of companies adopting this way of paying their staff has now passed that all-important tipping point. Wagestream is going mainstream and we are excited to play a part in its growth story.” – Rob Moffat, Partner, Balderton Capital.
