Priya PatelTLDR:
New York-based fintech company, DailyPay, has raised $75 million in equity financing from new and existing investors. The funding round was led by Carrick Capital Partners. In addition to the equity financing, DailyPay secured a $100 million expansion of its credit facility, providing it with a total revolving debt facility of $660 million. The company plans to use the funds to accelerate product development and expand into new markets.
Key points:
- DailyPay raises $75 million in equity financing led by Carrick Capital Partners
- The fintech company secures an additional $100 million expansion of its credit facility
- DailyPay plans to use the funding to accelerate product development and expand into new markets
DailyPay, a US-based fintech company, has raised $75 million in equity financing from a group of new and existing investors. The round was led by Carrick Capital Partners and values the company at $1.75 billion. In addition to the equity financing, DailyPay secured a $100 million expansion of its credit facility. With this addition, DailyPay now has a total revolving debt facility of $660 million.
The funds will be used to accelerate product development and support the company’s expansion into new markets. DailyPay provides an on-demand pay solution for corporates, including major banks like BMO and Santander. The company plans to further enhance its product offering and enter adjacent categories to build on its existing success.
Ken Brause, Chief Financial Officer of DailyPay, expressed his excitement about the new funding, saying, “This financing comes as we continue to rapidly add new clients and users to our platform and reflects the size, scale, and trajectory of the business.”
The additional credit capacity was provided by financial institutions Citi, Barclays, and the recently merged TPG Angelo Gordon. The credit facility expansion builds on an existing $500 million commitment from Barclays and a $60 million commitment from TPG Angelo Gordon.
In recent years, DailyPay has experienced significant growth, attracting major investors and expanding its client base in the banking industry. The company’s on-demand pay solution offers employees the ability to access their earned wages in real time, rather than waiting for their scheduled payday. This service has become increasingly popular, as it provides greater flexibility and financial stability for workers.
DailyPay’s successful funding round highlights the growing demand for fintech solutions in the banking industry. With its new capital, the company aims to further innovate its product offering and enter new markets.
