DailyPay, the provider of on-demand pay solutions for enterprises, has acquired $500 million in capital.
DailyPay has completed a $175 million Series D equity round that was led by Carrick Capital Partners along with contributions from existing investors.
DailyPay has also secured $325 million of credit capital from different sources. The firm plans to invest the funds raised into various market opportunities for its tech stack. DailyPay will also extend its market leadership role in on-demand pay among the world’s largest employers.
Jason Lee, CIO and Founder at DailyPay, stated:
“Since 2016, we have partnered with world-class employers to enable their employees to access or save their pay as they earn it. The initial application of our first-of-its-kind technology platform was to redefine how money moves between employers and their employees. We are now expanding our platform to change the relationship between merchants and their shoppers, as well as financial institutions and their customers. This platform enables us to create a new financial system by rewriting the invisible rules of money.”
With this latest round of funding, DailyPay is also welcoming new investor Carrick Capital Partners.
Lee added:
“We are thrilled to welcome Carrick as a new partner and to our Board of Directors. The team at Carrick has a demonstrable record of helping companies to scale exponentially and enter the public markets. We are excited to leverage their expertise at this pivotal time of opportunity for DailyPay.”
Jim Madden, Co-CEO of Carrick Capital Partners, remarked:
“We have seen the explosion in the on-demand pay industry, and how DailyPay has been leading the category. 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.”
Scot Parnell, Chief Financial Officer at DailyPay, noted:
“This financing package creates a fortress balance sheet that we can deploy on behalf of employers and their employees. The on-demand pay industry requires an exceptionally well-capitalized balance sheet to ensure the highest degree of service delivery, reliability and trust.”
80% of Fortune 200 firms that provide on-demand pay have been working with DailyPay. During the past year, the payments firm has hit several noteworthy milestones.
DailyPay expanded its revenue by 141% last year and it also released various new products and services that aim to benefit employers. They include tools to support off-cycle transactions and remit employee reward payments.
DailyPay also introduced ExtendPX, its proprietary white-label solution for Payroll/HCM firms.
They were also involved with regulatory developments such as committing to a Memorandum of Understanding (MoU) with the State of California. DailyPay reports considerable increases in usage in 2020, remitting payments to more than 6,000 financial institutions in the US.
FT Partners has reportedly served as the exclusive financial advisor to DailyPay on this latest deal.