DailyPay, a fintech startup that helps employees access their wages when they want, announced this week it has pulled in $500 million in fresh capital. The raise includes a $175 million Series D equity round led by Carrick Capital Partners, and $325 million of credit capital. The company is hiring, too, with more than 50 open tech positions available now.
Founded in 2016, DailyPay helps employees control when it is pay day. Typically, companies pay their staff every two weeks, but DailyPay’s software lets workers (mainly hourly workers) access their money as soon as they earn it. Founder and CEO Jason Lee said in a statement that the company is now expanding its services to do the same thing for “merchants and their shoppers” and “financial institutions and their customers,” too — “rewriting the invisible rules of money.”
Today, DailyPay says it offers its on-demand pay services to 80 percent of Fortune 200 companies, and that it saw an especially significant increase in usage last year, remitting payments “every single minute of the entire year.” The company’s revenue grew more than 140 percent.
“We have seen the explosion in the on-demand pay industry, and how DailyPay has been leading the category,” Jim Madden, co-CEO of Carrick Capital Partners, said in a statement. “We chose to invest in DailyPay now because we believe they are only just beginning to respond to the enormous opportunity they have to provide on-demand pay solutions to global enterprises.
Sources close to the matter told Barron’s that this latest round values DailyPay at more than $1 billion, making it NYC’s latest unicorn. The company says it will use the money to invest in new market opportunities to maintain its position as a leading on-demand pay tool for some of the largest employers in the world.
“This financing package creates a fortress balance sheet that we can deploy on behalf of employers and their employees,” DailyPay’s CFO Scot Parnell said in a statement. “The on-demand pay industry requires an exceptionally well-capitalized balance sheet to ensure the highest degree of service, delivery, reliability and trust.”
