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Leading fintech announces the close of a $75 million equity round and the $100 million expansion of an existing secured credit facility, with the incremental financing provided by Citi
Funds will be used to accelerate growth and expansion into adjacent categories and new markets
NEW YORK - DailyPay, the prominent on-demand pay company, has recently secured more than $175 million in funding to support its growth initiatives. This funding comprises $100 million in expanded secured credit facility capacity extended by Citi and over $75 million in equity financing, establishing the company's valuation at $1.75 billion on a pre-money basis.
The equity financing, sourced from both existing and new investors, with Carrick Capital Partners leading the way, will be strategically utilized to further propel DailyPay's ongoing efforts in product innovation and facilitate its expansion into new markets and adjacent categories. The additional $100 million expansion of the existing credit facility from Citi elevates DailyPay's revolving secured debt facility to $660 million. This total includes the initial commitments of $500 million from Barclays and $60 million from TPG Angelo Gordon.
"DailyPay's employer-integrated on-demand pay platform is putting power back in the hands of the worker by allowing them to track, transfer, spend or save their pay as they earn it," said Kevin Coop, Chief Executive Officer of DailyPay. "This latest equity capital raise, from both long-time institutional investors and new financial partners, underscores DailyPay's strength and market-leading position. We are eager to capitalize on this momentum as we continue to revolutionize the future of pay."
"DailyPay is excited to welcome Citi to our distinguished group of lenders and financial partners," added Ken Brause, Chief Financial Officer of DailyPay. "The additional $100 million to our credit facility comes as we continue to rapidly add new clients and users to our platform and reflects the size, scale and trajectory of the business."
FT Partners acted as the exclusive strategic and financial advisor for DailyPay in the equity financing transaction. DailyPay collaborates with prominent employers spanning diverse industries, including Fortune 500 companies like Hilton, Target, Kroger, and Dollar Tree. Companies that integrate DailyPay into their offerings experience favorable outcomes in terms of recruitment and employee retention. DailyPay empowers users to manage their earned pay effectively, allowing them to pay bills promptly without incurring unnecessary fees related to overdrafts, high-interest credit products, or payday loans.
