DailyPay announced a $175 million Series D round of venture capital for its on-demand pay solution. It also added debt financing (what they call credit capital) of $325 million. DailyPay’s total raised to date is unclear because several of its earlier rounds were undisclosed.
DailyPay was one of the early movers in on-demand pay. I coached DailyPay founder Jason Lee for a startup competition in 2018 at the HR Technology Conference and Exhibition. At that time, Lee has a vision for scale and impacting great change on the flow of funds from employers to their employees that need access to it the most. Since that time, they’ve achieved some impressive milestones.
- In 2020 DailyPay usage increased to a level where it was remitting payments every single minute of the entire year, to over 6,000 different financial institutions in the United States. (let that sink in)
- They claim that 80% of Fortune 200 companies that offer on-demand pay partner with them.
- The company claims to have grown revenue by 141% in 2020.
DailyPay has also released a suite of new products and services that benefit employers, including tools to enable off-cycle payments and remit employee reward payments. Additionally, DailyPay launched ExtendPX, its proprietary white-label solution for Payroll/HCM companies. They also continued to contribute to the shaping of the regulatory environment, including signing a Memorandum of Understanding with the State of California.
DailyPay deploys a unique proprietary funding model for its payroll. This allows them to minimize any change management or additional implementation and execution burden for employers.
This is all impressive, but in the firm’s funding announcement there was a glimpse to the future of DailyPay that makes us wonder if its focus slipping away from payroll and work. Lee stated, “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.”
DailyPay will continue to be on our watch list.
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