Paywatch, Asia’s leading earned wage access (EWA) service provider, announced it has raised $30 million in funding, marking the largest funding round for an EWA player in Southeast Asia.
The funding consists of over $14 million in Series A equity investment led by Third Prime and a consortium of U.S. investors, including Vanderbilt University and University of Illinois Foundation, with new participation from Octagon Venture Partners and Wooshin Venture Investment Corp.
Additionally, Paywatch secured $16 million in credit facilities from global banks, including Citi.
Paywatch offers a debt-free EWA solution, allowing employees to access part of their accumulated salary in real-time before the end of their payroll cycle.
This solution has reduced employees’ reliance on loans, alleviated household debt, and improved financial management. The system has also enhanced employee retention and productivity for companies, resulting in significant cost savings.
Notable global brands such as Park Hyatt, DFI Retail Group, KFC, Pizza Hut, Wilmar International, and others have partnered with Paywatch.
Founded by brothers Richard and Alex Kim, Paywatch has processed over $58 million in salaries to date, with disbursements reaching nearly $8 million per month and growing by 15% month-over-month.
The company expects to exceed $120 million in salaries disbursed by the end of the year. Paywatch operates in Malaysia, the Philippines, Indonesia, and South Korea and plans to expand into new markets with the recent funding.
“This funding round amidst a challenging economic environment highlights the confidence our investors and banks have in our vision,” said Alex Kim, President and Co-founder of Paywatch. Michael Kim, General Partner of Third Prime, added, “We see Paywatch as a leading change agent in Asia, driving the adoption of earned wage access across diverse markets.”
For the first time, U.S.-based university endowment funds from Vanderbilt University and the University of Illinois Foundation have directly invested in an Asia-based tech startup.
“Paywatch’s technology can significantly advance financial inclusion in Southeast Asia,” said Travis Shore, Chief Investment Officer of the University of Illinois Foundation.
Paywatch plans to use a significant portion of the Series A funding to enhance its embedded finance offerings and other innovations.
Business News Asia