An employee benefits platform used by Asda and Burger King has secured close to £20m in new funding from investors including a subsidiary of the British Business Bank (BBB).
Sky News has learnt that Wagestream, which enables the employees of its corporate clients to receive their salary early every month, will announce on Thursday that it has raised £17.5m from a combination of new and existing shareholders.
Used by three million people, Wagestream offers a range of services through an interactive payslip, including choosing when they get paid, saving money on household bills and accessing free debt advice.
The company was founded six years ago by Portman Wills and Peter Briffett with the objective of addressing the premium that low and middle-income households face paying high street providers.
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Wagestream’s fundraising consists of money from British Patient Capital, an arm of the BBB, Lombard Odier Investment Managers, and existing investor Northzone.
The valuation at which it has secured the capital was unclear on Wednesday.
“Do frontline workers not deserve choice? Do frontline workers – who keep essential services running in good times and tough times – not deserve a better financial future?,” Mr Briffett, Wagestream’s CEO, said.
“We believe they do, and more than 1,000 employers agree.
“Together we’re closing the gap, with a platform that helps wherever people are in their financial life – from paying off debt, to saving for the first time, to building a credit file and planning for the future.
“The result is a better experience at work, better quality of life at home, and business impact for the employer – because healthy teams are loyal, productive teams.”
Wagestream operates in the UK, Spain and the US, and intends to use the new funds to expand its range of services and become a broader financial platform for low and middle-income workers.
Its new services this year are expected to include a credit-builder card for individuals previously denied access to credit and shopping discounts for those impacted by soaring inflation.
The company will also offer AI-powered coaching for those priced out of the financial advice sector, and loans for those previously overcharged by credit providers, according to Wagestream’s announcement.
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The funding round is designed to tap into growing demand from major employers for financial services aimed at their workforces.
Bupa, Pizza Express and the NHS also use Wagestream.
Ian Connatty, managing director of direct and co-investments at British Patient Capital, said: “Wagestream is growing at a rapid pace, while still delivering on the important social mission at its core – we’ve been impressed by the team’s clear vision and agile execution.”