- Earned wage access tool Wagestream raised $175 million.
- The investment includes $115 in debt funding and $60 in equity funding.
- Wagestream will use the funds to add to its product lineup and fuel its U.S. expansion.
Earned wage access tool Wagestream landed $175 million in combined debt and equity funding today. The Series C round, which brought $115 in debt and $60 in equity, boosts the U.K.-based company to a total of $254 million in total funding.
New investors in the round include Smash Capital, BlackRock Innovation and Growth Trust, and Silicon Valley Bank. Existing investors Northzone, Balderton, QED, LocalGlobe, XYZ, Village Global, and Fair By Design also contributed.
Founded in 2018, Wagestream has offered one million workers access to $4.7 billion in wages that they’ve earned. The company considers one measure of its success as capital raised to liquidity released. Wagestream estimates that, prior to today’s investment, the company’s ratio was 1:55. That is, for every $1 of capital it raised, it released $55 of capital. “We’re aiming for a ratio of 1:100, meaning every $1 of capital raised by Wagestream will unlock $100 of impact for frontline workers,” said Wagestream Co-founders Peter Briffett and Portman Wills.
In addition to making that ratio possible, today’s investment will also power the development of new services, including an insurance offering that automatically adjusts coverage and premium, an app that enrolls users into optimal energy plans, fair credit without the need for a traditional credit score, and an intelligent savings installment plan.
Wagestream will also leverage the investment to expand internationally. Specifically, the company will focus on serving U.S. users. To fuel this move, Wagestream recently opened its U.S. headquarters in Washington, D.C.