A year after trying to rescue payday lender Wonga, Balderton Capital is investing in the other side of the model by leading a $ 19 million Series A fundraiser in Wagestream, a UK startup that provides flexible payroll technology to avoid payday loans.
Balderton’s investment in Wagestream comes around a year after its investment in bankrupt UK fintech Wonga.
Wagestream, whose customers include Camden Town Brewery, offers an early payday advance to consumers when they cannot meet their financial obligations. In the United States, companies such as PayActiv provide a similar product.
The Wagestream app is already used by around 115,000 workers, reports the Standard Evening. The service costs a flat fee of £ 1.75 per transaction. Employers pay a fee of £ 1 per worker using the service. Wagestream’s new investment also includes Northzone.
Wagestream has raised £ 44.5million (approximately US $ 56.6million) in debt and equity financing over three rounds since 2018, according to Crunchbase. When it first raised money, it attracted an investment from Village Capital, the San Francisco-based venture capital firm that counts Bill Gates, Jeff Bezos and Mark Zuckerberg among its main investors.