PayActiv More than Doubles its Funding with Fresh $20 Million

Employer-provided financial wellness platform PayActiv is receiving some wellness of its own this week in the form of $20 million. The Series B financing round was led by Generation Partners, with contributions from existing investors  Ziegler Link•Age Fund II and affiliate funds of Softbank Capital.

Combined with its previous investments totaling $13.5 million, today’s round more than doubles PayActiv’s total funding, which now adds up to $33.5 million. PayActiv will use today’s investment to expand its platform, accelerate growth, and develop more financial solutions for workers across the globe.

Mark Jennings, Managing Partner at Generation Partners, said that his firm chose to invest because it believes PayActiv has “the potential to positively change the lives of millions of workers, while also growing a profitable and successful business.”

The California-based company has experienced significant growth since its launch in 2012, expanding six-fold in the past year alone. Contributing to that growth was a large-scale contract signed with Walmart in December of 2017 and an agreement with ADP in July of 2018, which makes PayActiv’s services available to more than 600,000 businesses across the U.S.

Commenting on the growth, John Hawkins, Managing Partner at Generation Partners, said, “PayActiv has created a massive positive impact on the relationship between employees and employers. Already, they are settling more than $100 million in earned wage access transactions each month, and the company estimates that employees are avoiding an estimated $10 million each month in eliminated late charges, overdraft fees, and interest charges.”

As part of the deal, Hawkins will join the PayActiv Board of Directors.

At FinovateSpring 2016, PayActiv CEO and Founder Safwan Shah demonstrated how the PayActiv app encourages saving by helping users approach saving in units of time vs. percent of income. Earlier this fall, NPR featured PayActiv as Walmart’s payday loan alternative and in May the company was highlighted in the Wall Street Journal as a better alternative to payday loans.

Finovate Alumni News

On Finovate.com

  • PayActiv More than Doubles its Funding with Fresh $20 Million.

Around the web

  • IdentityMind Global selects Oracle Cloud Infrastructure to host its trusted digital identities regtech platform
  • Adobe launching Magento Payments with PayPal’s Braintree for payment processing.
  • Tangerine partners with Meniga for digital banking.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Klarna Rakes in $20 Million in Fall Funding Round

Online payments innovator Klarna landed a strategic partnership along with a new round of funding this week. The Sweden-based company has partnered with fashion retailer H&M, which has invested $20 million in Klarna, bringing its total funding to almost $682 million.

Klarna, which is already partnering with retailers such as Ikea and ASOS, will work together with H&M to offer omni-channel payments, provide an in-app post-purchase service, and power payments for H&M’s digital loyalty program, H&M Club. As a result, millions of H&M customers across 14 countries will benefit from a simplified and more personalized payment experience. The retailer will go live with the U.K. and Sweden markets in 2019.

In the press release, Sebastian Siemiatkowski, CEO and co-founder of Klarna said, “Customers will no longer be forgiving of unnecessary complexity or when their retail experience does not leverage the insight available to make their engagement smart, personal and easy. This partnership is rooted in a shared obsession about just how good that shopping experience should be. Together we have worked hard on developing a unique solution for instore and online that will delight customers, drive economic value, and build loyalty.”

According to TechCrunch, today’s round values Klarna “north of $2.5 billion.” The publication also seeded a rumor that Klarna has been considering going public to gain liquidity.

Founded in 2005, Klarna offers shoppers a range of options– pay at the point of sale, pay over time, or pay later. In addition to offering consumers more options, the payment variety helps businesses improve sales and Klarna’s online merchant portal helps them manage all of their payment and marketing tools from a single platform.

At FinovateSpring 2012, the company demonstrated its online payment-processing service. Klarna has formed a variety of merchant partnerships this year, and the company began 2018 with a partnership with ACI, in which the electronic payment solutions provider will enable online businesses to integrate Klarna’s payment products.

FinovateAsia Sneak Peek: Top Image Systems

FinovateAsiaA look at the companies demoing live at FinovateAsia on October 29 and 30, 2018 in Hong Kong. Register today and save your spot.

Top Image Systems (TIS)’s eFLOW Intelligent Capture is designed to operate in high-volume situations, regardless the scale of most companies’ non-structured data capture challenges.

TIS’ eFLOW Intelligent Capture provides data extraction with machine learning, a branch of AI, and dynamic redaction – it helps companies thrive in the digital age.

Why it’s great
TIS’ eFLOW Intelligent Capture is able to manage the broadest collection of content formats and sources. Its configurable platform is able to address ever-changing business needs over time.

Presenters

Wei Hao Goh, Head, Technical Account Manager
Providing thought leadership to operation leaders across various industries, Goh leverages his expertise in intelligent document content capture and processing to help firms succeed on a global scale.
LinkedIn

Jimmy Chim, Technical Account Manager
With over seven years’ experience improving operational processes for firms across industries, Chim excels in planning strategic directions, while managing the implementation of complex solutions.
LinkedIn

FinovateAsia Sneak Peek: Rootant

FinovateAsiaA look at the companies demoing live at FinovateAsia on October 29 and 30, 2018 in Hong Kong. Register today and save your spot.

Rootant empowers global financial institutions to transform to a cross-platform, easy-to-use, and user-friendly financial platform with applications and services that improve the end user experience.

Features

  • Various services: front-end replacement, application enhancement, gamification, workshop, and training
  • Various verticals: bank, broker, asset investment, and wealth management
  • Various presence: SH, HK, and SGP

Why it’s great
Rootant (Finance_Design+Tech+Global) provides better financial experience for clients.

Presenter

Lincoln Yin, CEO
Yin is a young entrepreneur who started Rootant at the age of 19. He is a member of the Global Shapers Community and a delegate of the G20 Young Entrepreneurs Alliance.
LinkedIn

Finovate Alumni News

On Finovate.com

  • Klarna Rakes in $20 Million in Fall Funding Round

Around the web

  • Entrust Datacard named Employer of Excellence.
  • Ayondo expands B2B offering in Asia with a new white label deal.
  • Tradeshift appoints Silicon Valley veteran as its First CLO, CCO.
  • eToro cuts crypto costs to support mass adoption.
  • Roostify announces bidirectional integration with Ellie Mae’s Encompass digital mortgage solution.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

FinovateAsia Sneak Peek: Voca.ai

FinovateAsiaA look at the companies demoing live at FinovateAsia on October 29 and 30, 2018 in Hong Kong. Register today and save your spot.

Voca.ai is a human-friendly virtual agent supercharging contact centers. The Voca agent significantly reduces costs of call centers while increasing revenues.

Features

  • Personalization: adjusts tone, accent, and gender per the customer’s data
  • Customization: is customized to the business’ lingo and terminology
  • Scalability: can make 200 calls one day and 1 million the next

Why it’s great
Voca.ai is the only scalable way to reach out to your customers over the phone without losing the human touch.

Presenter

Einav Itamar, Investor, Director
Itamar is a serial tech entrepreneur with 12 years of experience in AI and big data.
LinkedIn

FinovateAsia Sneak Peek: DepositBook

FinovateAsiaA look at the companies demoing live at FinovateAsia on October 29 and 30, 2018 in Hong Kong. Register today and save your spot.

DepositBook is a wholesale deposit marketplace that connects institutional and corporate depositors with banks globally.

Features

  • Offers an open banking platform revolutionizing the wholesale deposits markets
  • Grants depositors access to special interest rates with one central account
  • Allows banks to raise liabilities at no additional costs

Why it’s great
DepositBook’s deposit marketplace creates a win-win for all stakeholders. Banks can raise funding with global depositors who discover the best rates and transact through a central account in a seamless manner.

Presenters

Siddharth Bhandari, CEO
Bhandari is the founder CEO of DepositBook. He has been a career banker for over 20 years, holding leadership positions globally. Bhandari has a Masters degree in Finance from the London School of Economics.
LinkedIn

Samir Rajpurkar, CTO and Co-founder
Rajpurkar has 25+ years of experience in banking and technology. He was formerly Regional Head of Technology at Standard Chartered Bank (SCB), where he was responsible for managing technology services.
LinkedIn

Student Loan Genius Relaunches as Vault

Fall has brought not only a change of season for student loan repayment benefits platform Student Loan Genius, it also marks a name change, as the company has rebranded as Vault this week.

“Vault was born out of the desire and ability to be more than a third-party financial technology service for organizations,” said Matt Beecher, CEO of Vault. “We solve a very real and increasingly suffocating financial problem that affects a large number of employees: student loan debt. And, we are willing to get down into the trenches to create results that give our clients an advantage in the marketplace. We’ve changed our name to reflect that we’ve honed our focus, more than ever, on empowering financial freedom.”

The rebrand also helps to differentiate Vault from a student loan refinancing platform with a name similar to its former one, Student Loan Hero.

The news comes as Vault closes a deal with American Family Insurance. The firm agreed to provide its employees with two of Vault’s offerings, Vault Pay, which facilitates employer student loan contributions; and Vault Advisor, an online tool that suggests customized payoff plans based on employees’ actual loans.

Vault was founded in 2013 and demonstrated at FinovateSpring 2016, where it showcased a 401(k) product that allows employers to allocate unused 401(k) dollars to student loan benefits. The offering launched this week under the name Vault Match. Headquartered in Texas, Vault has raised a total of $7.7 million.

Lighter Capital Launches Capital Client Perks Program

Revenue-based financing provider Lighter Capital has brightened up its services today with the launch of a new perks program.

The Lighter Capital Client Perks, which bundles business tools and service offerings, launches today for startups funded by Lighter Capital. Customers can use the program for free and benefit from offers that add up to $75,000 in savings from 30 companies (including Finovate alum Gusto), more than 10% of which are Lighter Capital clients. Offerings include cloud hosting, HR services, marketing and sales automation, CRM, and more.

“We recognize that in today’s business environment, it takes more than money for tech startups to achieve success – so we’ve assembled a lineup of services specially catered to assist early-stage companies,” said BJ Lackland, CEO of Lighter Capital. “Our goal is to help startups grow. We’d love it if companies can receive enough savings from these perks that they effectively pay us no interest on our loans. That’s a great benefit for everyone.”

Since it was founded in 2010, Seattle-based Lighter Capital  has funded more than 270 startup companies with 450+ rounds of financing totaling more than $125 million. Designed for tech companies, Lighter Capital’s revenue-based financing model exchanges from $50,000 to $2 million in up-front capital for 2% to 8% of future revenue. Unlike with VC funding, startups retain full ownership of their company.

Lighter Capital last demoed at FinovateFall 2013 where it showcased loan analysis and monitoring tools. The company was recently ranked 776 on the Inc. 5,000 list for achieving a growth rate of 6.5x over the last three years.