DailyPay secured $500 million of capital, including a $175 million Series D round of equity financing and $325 million of credit capital.
The equity round was led by Carrick Capital Partners existing investors participating. The credit capital was raised from various sources. DailyPay said it will invest the funds in pursuing new market opportunities for its technology platform, as well as extending its market position in on-demand pay..@DailyPay secured $500 million of capital, including a $175 million Series D round of equity financing and $325 million of credit capital. #HR #HRTech Click To Tweet
The company has its eye on areas besides payroll, however. CEO Jason Lee said DailyPay is “now expanding our platform to change the relationship between merchants and their shoppers, as well as financial institutions and their customers.” The DailyPay platform, he said, “enables us to create a new financial system by rewriting the invisible rules of money.”
Carrick Capital Partners is a new investor for DailyPay. “We have seen the explosion in the on-demand pay industry, and how DailyPay has been leading the category,” said Jim Madden, the firm’s co-CEO. “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.”
DailyPay says its customers include 80% of Fortune 200 companies that offer on-demand pay. The company said it increased revenue in 2020 by 141%, and released a suite of new products and services including tools to enable off-cycle payments.
In March, DailyPay enhanced its platform to allow HCM technology, time management and payroll providers to offer its services through their product suites. The launch of the product, called ExtendPX, moves DailyPay beyond its traditional offering by opening its services to a range of vendors.