Wagely, an Indonesian platform for access to salaries and financial services, raises $ 5.6 million – TechCrunch
The Wage Access Platform (EWA), which allows employees to generate income as they need without having to wait for payday, is proliferating around the world. Indonesian startup EWA announced today that it has raised $ 5.6 million in strategic funding led by Integra Partners (formerly known as Dymon Asia Ventures). Other investors include Asian Development Bank (ADB) Ventures, PT Triputra Investindo Arya, Global Founders Capital, Trihill Capital, 1982 Ventures and Willy Swandi Dharma, former chairman of insurance company PT Asuransi Adira Dinamika.
Founded in 2020 by graduates of two of Southeast Asia’s biggest tech companies, it will reach more than 250,000 users this year. Managing Director Tobias Fischer was a former Regional Director of the Funding Program at Grab Financial Services Asia, and CTO Sasanadi Rukua was Vice President of Engineering at Tokopedia.
After working for a financial services company in Southeast Asia, Fischer told TechCrunch that he and Luka realized that “managing cash flow is the most pressing daily problem for low- and middle-income Indonesians. “. It was.
As the pandemic has exacerbated financial difficulties, Mr Fischer said more than 75% of Indonesians are already struggling to cover unforeseen expenses between salaries. Many borrow from family and friends, but if that option is not available, you can take out a payday loan that can charge more than 360% of the annual rate, or you can pay the bank overdraft or default up. ‘to your next salary. ..
“This is the start of a vicious and costly debt cycle that has a long-term negative impact on an individual’s financial situation, as well as high turnover, low productivity and increased loans. to employees. “Fischer said.
On average, more than 50% of employees at wayly’s client companies use this service several times a month to track their daily income and access the salaries they earn. The ultimate goal of the company is to “build a comprehensive financial and health platform for low and middle income workers”, including other financial services including savings, insurance and of smart spending, Fisher said. ..
More and more companies around the world are giving their employees the choice of when to receive their salary. A notable EWA platform is Gusto’s Flexible Pay. DailyPay, Recently Achieved Unicorn Status, Pay Stream; Meine and Even. In Indonesia, gajiGesa and Gajiku are Waverly’s competitors.
“We have created the category of access to earned wages in Indonesia,” said Fischer, saying he is the market leader for more than 50 large companies, including state and multinational companies. Used to augment the Wagely sales team to close corporate transactions. Current Wagely customers include PT Bentoel Internasional Investama Tbk (British American Tobacco). PT Supra Boga Lestari Tbk (ranch market); Beauty and health company PT Mustika Ratu Tbk. And the renewable energy group PT Kencana Energi Lestari Tbk.
In a press release, Wilson Maknawi, President of PT Kencana Energi Lestari TBK, said: This is a very important and important step for the long term resilience of our business. Without altering the payroll process, Wageley’s solution has been shown to increase business savings, helping employees avoid predatory lending and at the same time improving savings and budgeting tools to improve financial literacy. Supplied. “
Wagely, an Indonesian platform for access to salaries and financial services, raises $ 5.6 million – TechCrunch Link Source Wagely, an Indonesian platform for access to salaries and financial services, raises $ 5.6 million – TechCrunch