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Early wage access start-up Wagely gets $8.3 million in funding
The funding will go to developing its platform and expand operations in Indonesia and Bangladesh.
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Earn wage access (EWA) app Wagely. (Courtesy of Wagely/-)
E
arly wage access start-up Wagely announced on Wednesday that it had received US$8.3 million in pre-series A funding to develop its platform and expand operations in Indonesia and Bangladesh.
The latest round was led by East Ventures with participation from existing backers, including Integra Partners, the Asian Development Bank (ADB), Global Founders Capital, Trihill Capital, Blauwpark Partners and 1982 Venture, bringing the total funding raised to $14 million in less than two years.
Based in Jakarta, Wagely allows employees whose companies are part of the platform to get part of their monthly salaries ahead of payday in return for a flat fee. This early wage access service is meant to address employees’ cash flow problems.
“Instant access to salary plays a pivotal role in reducing costs for employers and increasing the productivity and wellbeing of workers,” Wagely CEO and founder Tobias Fischer said in a statement.
Read also: Executive column: Wagely bills itself as on-demand alternative to predatory lending
Launched in 2020, the company last announced raising $5.6 million in its seed funding round in June 2021.
Many Indonesian workers, especially lower and middle-income ones, experienced financial duress during the COVID-19 pandemic when their salaries were cut or they were laid off. They often turned to loan sharks, payday loans and illegal online lenders to get cash to pay bills, getting stuck in a vicious cycle of debt.
