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.

The pre-series A funding comes a few months after Wagely entered Bangladesh in October last year. The company's customers in Bangladesh include apparel manufacturers SQ Group, Classic Composite and Vision Garments. The two emerging countries have more than 150 million workers in total.

Wagely said its user base grew tenfold year-on-year in 2021. Its customers in Indonesia include grocery chain Ranch Market, coal miner Adaro Energy and oil and gas producer Medco Energi. 

“With Wagely’s rapid growth in recent quarters, we believe it will be the preferred partner for large enterprises that aim to challenge the status quo of worker financial wellness in Indonesia and beyond,” said East Ventures managing partner Roderick Purwana.

He noted that 75 percent of the population in Asia lived paycheck to paycheck.

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