Payments

Payment technology company DailyPay nabs $500M capital

The NYC-based company raised $175 million in a Series D equity round and $325M in credit

Payment technology company DailyPay has nabbed $500 million in capital, $175 million of which was raised in a Series D equity round and $325 million of which is in credit capital from “various sources,” a press release shows.

The company, which provides on-demand payments services, will use the capital injection for new market opportunities and scaling its presence.The Series D round was led by Carrick Capital Partners along with participating existing investors.

The company claims that 80% of Fortune 200 companies that use on-demand pay have a partnership with DailyPay. The company has also gained some significant growth traction in the past 12 months, having grown its revenue by 141% in 2020 and released a suite of new products. The company also remitted payments to more than 6,000 financial institutions in the U.S.

“This financing package creates a fortress balance sheet that we can deploy on behalf of employers and their employees,” Scot Parnell, Chief Financial Officer at DailyPay said in a statement. “The on-demand pay industry requires an exceptionally well-capitalized balance sheet to ensure the highest degree of service delivery, reliability and trust.”

New York City-based DailyPay has partners with companies like Dollar Tree, Berkshire Hathaway and Adecco. DailyPay also has operations based in Minneapolis.

“We have seen the explosion in the on-demand pay industry, and how DailyPay has been leading the category,” Jim Madden, Co-CEO of Carrick Capital Partners, said in a statement. “We chose to invest in DailyPay now because we believe they are only just beginning to respond to the enormous opportunity they have to provide on-demand pay solutions to global enterprises.”

In other recent fundraising news, Pipe, a company that has built a trading platform for recurring revenues, has secured $250 million in strategic equity funding, reaching a $2 billion valuation after publicly launching less than a year ago.

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