Pay-as-you-go startup earns another $8.3 million in pre-Series A funding
Wagely, Asia’s fastest growing financial wellness platform, raised $8.3m in oversubscribed pre-Series A funding as the company expands its platform -form to help workers access their wages on demand in Indonesia and Bangladesh.
The funding comes just seven months after securing its seed funding.
The oversubscribed funding round was led by East Ventures (Growth Fund) with participation from existing backers including Integra Partners, Asian Development Bank, Global Founders Capital, Trihill Capital, Blauwpark Partners and 1982 Ventures, bringing total funding raised to $14 million in less than two years.
Wagely also disclosed that he had secured backing from Central Capital Ventura, the venture capital arm of Indonesia’s largest private bank, Bank Central Asia (“BCA”). The investment in Wagely supports the commitment to expand the digital financial ecosystem and provide financial wellness solutions across Indonesia.
With stagnant incomes, the rising cost of living and lack of savings, workers are under daily pressure to stay financially afloat. The options for this segment are very limited in the face of an urgent need for cash. The result is a vicious cycle of repeated reliance on payday loans and other expensive financial products, leading to pervasive financial stress among the workforce. Launched in 2020, Wagely is building a holistic financial wellness platform with Earned Wage Access (“EWA”) at its core that allows workers at partner employers to access their earned wages in real time. The concept, which has been proven in several markets around the world, has been adopted by some of the most renowned organizations, including Walmart, Pizza Hut and Visa, to reduce turnover, improve productivity and increase savings. companies.
Founded by former Grab and Tokopedia executives, Wagely has seen strong growth in its markets, with its user base growing 10x in 2021, while partnering with some of Indonesia’s largest employers, including British American Tobacco, Ranch Market, Adaro Energy and Medco Energi. The pandemic has exacerbated the financial hardship faced by low- and middle-income workers, increasing the need for employers to reduce financial stress on their workers.
Commenting on the investment, Roderick Purwana, Managing Partner of East Ventures, said: “With Wagely’s rapid growth over the past few quarters, we believe they will be the go-to partner for large companies aiming to challenge the status quo of the financial well-being of workers in Indonesia and We are delighted to support Tobias, Didi, Kevin and the team at Wagely as they change the lives of millions of workers across Asia, where more than 75% of the population lives from wage to wage.
The pre-Series A funding comes just months after the company expanded into Bangladesh, home to the world’s 7th largest working population. “We are proud to operate successfully in two of Asia’s largest markets, employing over 150 million workers. Instant access to pay plays a pivotal role in reducing costs for employers and increasing productivity and worker wellbeing. We are honored to offer Wagely’s financial wellbeing platform to leading garment manufacturers in Bangladesh, including SQ Group, Classic Composite and Vision Garments,” said Tobias Fischer, CEO and co-founder of Wagely.
The new capital will allow the company to accelerate its market-leading position in Indonesia and Bangladesh and drive the development of its holistic financial wellness platform, which the company plans to begin rolling out later this year.