Paywatch, a Malaysian startup that provides earned wage access (EWA) service, has announced raising $30 million in a mix of credit and equity funding.
The startup secured $14 million in its Series A funding round, which was anchored by US venture capital investor Third Prime and a consortium of US investors.
The equity round was also backed by new investors, including Korean venture capital firm Octagon Venture Partners and early-stage venture investor Wooshin Venture Investment Corp.
Paywatch also secured $16 million in credit facilities from global banks, including Citi. The startup said it was the largest funding round closed by an EWA player in Southeast Asia.
The firm said it will use the fresh funds to enhance its employee wellness solutions and further expand in Southeast Asia. The startup already operates in Malaysia, South Korea, the Philippines, and Indonesia.
Founded by brothers Alex and Richard Kim, Paywatch provides employees with access to their earned salary anytime and anywhere without having to file cash advance requests or incur interest charges.
“We firmly believed that providing earned wage access at the lowest, nominal fee to users while ensuring access to major financial institutions was the sustainable path,” said Alex Kim, President and co-founder of Paywatch.
In January, DealStreetAsia reported that the startup received $5 million from Third Prime. It also announced raising $9 million in a pre-Series A round led by Third Prime in 2022. Its other backers include Vanderbilt University and the University of Illinois Foundation.
The startup said it has processed over $58 million in salaries through its system to date and increased its disbursements to nearly $8 million per month.
The company expects to reach well over $120 million in salaries disbursed by the end of the year, more than doubling its lifetime volume.
Last year, Paywatch entered the Philippines, marking its third market and its second in Southeast Asia. The company considers the Philippines an essential part of its expansion strategy in Southeast Asia.
“It is a thrilling time to witness the rapid adoption of earned wage access as it spreads across markets with different regulations and cultures, all working towards the same end goal of optimising outcomes for the employee and the employer,” said Michael Kim, General Partner of Third Prime, the equity round’s lead investor.
