ZayZoon earns $46M in Series B financing for its wages-on-demand platform
Over the past year, the Calgary-based company has seen 400% year-over-year growth.
ZayZoon, a platform that enables employees to access earned wages on demand, has raised CAD $46 million (US $34.5M) in debt and equity as part of a Series B financing round.
The investors: The round was led by Framework Venture Partners, with co-investment from Export Development Canada (EDC) and participation from Edmonton-based ATB Financial as well as existing shareholders.
The product: Put simply, ZayZoon allows employees to instantly access their earned wages on demand. The company’s goal is to reduce financial stress related to individual cash flow shortfalls between paycheques, with the upshot being improved employee retention, productivity, and engagement.
The next steps: The company said the new access to capital will support hiring and other forms of growth. “This financing will fuel our mission in being a true partner in financial health and workplace engagement to small and midsize businesses,” said Darcy Tuer, co-founder and CEO of ZayZoon, in a statement.
The context: 63 per cent of Americans are living paycheque to paycheque. To that end, earned wage access (EWA) — how ZayZoon describes its product — is meant to provide employees with financial stability and help employers support increased financial education and wellness for their teams. In that sense, for the companies that provide access to it, ZayZoon can act as a company benefit. Ultimately, It supports “the millions of Americans living paycheck to paycheck get by between paydays and plan for the future,” Tuer said.
The growth story: Year-over-year, ZayZoon says it has seen more than 400% growth in payouts. That’s been fueled by a growing customer base, and deals with name brand companies and franchisees with megabrands like Dunkin’, McDonald’s, and Amazon Warehouses. The firm says that this “expansive and persistent growth represents a clear and emerging demand for EWA and employee engagement platforms among an SMB audience.”
The kudos: “ZayZoon is making a tangible, positive difference in the financial health and futures of their customers and families,” said Ajay Gopal, partner at Framework Venture Partners. “We’re excited to partner with ZayZoon at such a pivotal time in the company’s history and look forward to supporting its continued growth and impact on the communities it serves.”
Earlier this year, ZayZoon was named an ADP and PrismHR Marketplace Partner of the Year.