On-demand pay company DailyPay has reeled in $175 million in venture capital and $325 million in credit from various sources, the company said. In a press release, DailyPay said it will expand the uses of its technology platform and seek new customers. The venture funding round was led by Carrick Capital Partners with participation from existing investors.
The company is now expanding its platform “to change the relationship between merchants and their shoppers, as well as financial institutions and their customers,” DailyPay CEO Jason Lee said. He added that his company helps “employees to access or save their pay as they earn it.” On-demand pay means employees can receive all or some of their wages before their next scheduled payday.
Lee said that a representative from Carrick will join DailyPay’s board. “The team at Carrick has a demonstrable record of helping companies to scale exponentially and enter the public markets,” he noted.
“We have seen the explosion in the on-demand pay industry, and how DailyPay has been leading the category,” said Jim Madden, co-CEO of Carrick Capital Partners. “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.”
“This financing package creates a fortress balance sheet that we can deploy on behalf of employers and their employees,” said Scot Parnell, chief financial officer at DailyPay. “The on-demand pay industry requires an exceptionally well-capitalized balance sheet to ensure the highest degree of service delivery, reliability and trust.”
Earlier this year, DailyPay rolled out a new product, ExtendPX, which is geared to payroll service providers and HR managers. The company’s on-demand pay service is also included in the mix. In January, DailyPay launched a program called Cycle to aid professionals with payments outside their usual schedule. With that product, DailyPay said, customers could receive payment immediately rather than waiting on a usual two-week pay cycle, for example.