An employee benefits platform used by Asda and Burger King has secured around £20 million in new funding from investors including a subsidiary of the British Business Bank (BBB).
Sky News has learned that Wagestream, which allows employees of its corporate clients to receive their wages in advance every month, will announce on Thursday that it has raised £17.5 million from a combination of new and existing shareholders.
Used by three million people, Wagestream offers a range of services through an interactive paycheck, including choosing when to 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 aim of addressing the premium low and middle income families face when paying high street suppliers.
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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 secured the capital was unclear Wednesday.
“Don’t frontline workers deserve a choice? Don’t frontline workers – who keep essential services running in good times and difficult times – deserve a better financial future?” said Briffett, CEO of Wagestream.
“We believe so, and more than 1,000 employers agree.
“Together we are bridging the gap, with a platform that helps wherever people are in their financial lives – from paying off debt, to saving for the first time, to creating 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 and productive teams.”
Wagestream operates in the UK, Spain and US and aims 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 card for individuals who previously did not have access to credit and shopping discounts for those affected by rising inflation.
The company will also offer AI-based coaching for those outside the financial advisory industry and loans for those previously overcharged by credit providers, according to Wagestream’s announcement.
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The funding round is designed to capitalize on growing demand from leading employers for financial services for their workforce.
Bupa, Pizza Express and NHS also use Wagestream.
Ian Connatty, managing director of direct investments and co-investments at British Patient Capital, said: “Wagestream is growing at a rapid pace whilst continuing to deliver on the important social mission at its core – we were impressed by the vision clear teamwork and agile execution.”
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