Paywatch, an earned-wage access (EWA) service provider that entered the Philippines last year, has announced raising $30 million in equity and debt funding.
In a statement, the startup said it raised $14 million in its Series A funding round and another $16 million in a credit facility. It will use the fresh funds to further enhance its embedded finance offerings and to expand in Southeast Asia.
The Series A funding round was led by US investor Third Prime and backed by a consortium of investors, including Vanderbilt University and the University of Illinois Foundation. Octagon Venture Partners and Wooshin Venture Investment Corp also participated.
The credit facility, on the other hand, was secured from global banks, including Citi and other major banks. Paywatch said its latest funding round was the largest by an EWA player in the region.
Paywatch entered the Philippines in October as it seeks to drive financial inclusion and empower workers in Southeast Asia.
Founded in 2020, Paywatch is the only bank-backed and regulator-approved EWA solution in Asia. Based out of Malaysia and South Korea, the Philippines marks the third market for Paywatch and the second in the region.
Paywatch offers a debt-free EWA solution, also known as on-demand pay, an innovative employee benefit that allows workers to instantly access a part of their accumulated salary in real time as it is earned
“Amidst this funding and tech winter, we take immense pride in the confidence shown by these esteemed investors and banks in our vision,” said Alex Kim, president and co-founder of Paywatch.
He added that providing Earned Wage Access at the lowest, nominal fee to users while ensuring access to major financial institutions was the sustainable path.
“Although it was a more challenging route to market, our rapid growth and portfolio of high-caliber enterprise clients validate our approach,” Kim added.
During its entry into the Philippines, Kim said the expansion was an important milestone in the company’s journey to provide greater financial inclusion.
“The Philippines is the second largest country in Southeast Asia by population, with a young workforce. Paywatch has the opportunity to serve the 47 million employees in the country.”
Paywatch currently serves more than 500,000 employees globally across diverse sectors including retail, manufacturing, hospitality, BPO service centers, financial services, F&B, and more.