Wagestream raises $175 million

London-based Wagestream has closed a $175 million Series C funding round as it prepares to “scale up support for underserved, financially stressed workers across North America and beyond.” The funding round was led by Smash Capital, BlackRock, Balderton Capital, Northzone, Fair By Design, and Silicon Valley Bank. The financing was a mix of equity ($60 million) and debt ($115 million).

Founded in 2018, Wagestream is offered as an employee benefit, giving employees the option to access their wages earlier. In addition, the app provides users with a variety of financial services to help them build up their financial health over time. For example, people can choose how often they’re paid, track their shifts and pay each day, build savings and win prizes, access free financial coaching, and get fairer deals on products like insurance and utilities.

One million workers now can access Wagestream globally through over 300 employers in the U.S., UK, Spain, and Australia. Employers such as Hilton, Halfords, Pizza Hut, Co-op, and Bupa are Wagestream clients.

“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. 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.” – Peter Briffett, Wagestream CEO and co-founder.

“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.” – Brad Twohig, managing partner at Smash Capital.