- Money to expand employee wellness programs and initiatives throughout the Ocean
- Third Prime, the head investor, invests in financial and industrial technology companies.
In what is believed to be the largest funding round closed by an earned- wage access ( EWA ) startup in Southeast Asia, Malaysian headquartered startup, Paywatch, has raised US$ 30 million ( RM141 million ) in funding from a mix of equity and credit facilities to supercharge growth.
With the help of new investors Octagon Venture Partners and Wooshin Venture Investment Corp., Paywatch received over US$ 14 million ( RM65 million ) in Series A equity funding led by Third Prime and a consortium of US investors, including Vanderbilt University and the University of Illinois Foundation. Additionally, it secured payment services worth US$ 16 million from big banks, including Citi and other big banks, at global locations.
]RM1 = US$ 0.212]
” We take great pride in the assurance these reputable investors and banks have in our vision in the midst of this money and tech winter. We were firmly convinced from the beginning that ensuring accessibility to major financial institutions and offering Received Wage Access at the lowest, minimum payment was the best course of action. Our rapid expansion and collection of high-caliber business customers validate our approach, even though it was a more difficult way to market, according to Alex Kim, president and co-founder of Paywatch, who co-founded the business in South Korea in 2020 with his nephew Richard Kim.
An ESG individual gain
Employees can access a portion of their accumulated earnings in real-time as it is earned, as well as before the conclusion of their pay cycle, thanks to Paywatch’s debt-free EWA solution, also known as on-demand pay, an impressive employee benefit.
Paywatch’s remedy has clearly decreased employees ‘ dependency on loans, alleviated home debt and enhanced fiscal management. Together, Paywatch’s smooth, fully automated program has greatly boosted businesses ‘ employee retention and efficiency, resulting in significant cost savings associated with hiring and training.
Paywatch has partnered and collaborated with a few Malaysian brands and institutions such as Lotus, Jaya Grocer, QSR Brands ( including KFC and Pizza Hut ), FFM Bhd, PayNet, Shopper360, Guardian ( part of DFI Group ), Corus Hotel ( under MUI Group ), Llao Llao ( by Woodpeckers ), Coway, Media Prima, University of Nottingham Malaysia, UNITAR and Durioo.
It claims that these partnerships show how committed it is to offering a revolutionary financial service that meets the demands of Malaysia’s labor.
Most foreign EWA in Asia, biggest level with US$ 58mil processed
The firm, which serves the largest foundation of employees in Asia, has processed more than US$ 58 million in salaries through its method to time, and its monthly disbursements have increased by as much as US$ 8 million, or 15 %, month over month.
According to Paywatch, this results in the largest EWA service in Asia by volume of transactions. By the end of the year, the company anticipates receiving more than US$ 120 million in salary, more than double its lifetime value.
Since its establishment in 2020 in South Korea, Paywatch has expanded quickly to three other markets- Malaysia, Philippines, Indonesia. With the most recent funding, the company is “ready to expand into new markets and develop even more financially inclusive tools for our users,” Kim said.
Along with the company’s other innovation efforts, a significant portion of the Series A funding will be used to enhance the company’s embedded finance offerings.
Third Prime, a U.S.-based early-stage venture capital firm that invests in global leaders in financial and industrial technology, is Paywatch’s leading investor for this funding round.
In the US and Latin America, EWA has become a common employee benefit. And with such great momentum, Paywatch is emerging as the market’s leading change agent in Asia. As markets with different regulations and cultures are increasingly popular, the rapid adoption of earned wage access is a gratifying time, said Michael Kim, General Partner of Third Prime ( pic ).
Aligning with Malaysia’s financial inclusion vision
With a strong base of clients in Malaysia, Paywatch’s innovative EWA solution is set to enhance the financial well- being of Malaysian workers, one of the outcomes stated in the country’s National Financial Inclusion Strategy.
Paywatch argued that its instant access to earned wages supports the Malaysian government’s efforts to combat income disparity and foster financial stability among its citizens.
First time for US university endowments
The direct investment by the Vanderbilt University and the University of Illinois Foundation in Paywatch is regarded as a milestone in the market because it marks the first time these endowment funds from US universities have made an investment in an Asian tech startup.
We have long supported financial inclusion, and we think Paywatch’s earned wage access technology can help the movement advance significantly. Beyond the technology, we also believe in the company’s dedication and commitment to delivering true impact in Southeast Asia”, shares Travis Shore, Chief Investment Officer of the University of Illinois Foundation.
