DailyPay, a NYC-based on-demand pay company, secured over $175m in debt and equity funding.
The funding was divided between:
- $100m of expanded secured credit facility capacity provided by Citi; and
- over $75m in equity financing, which valued the company at $1.75 billion on a pre-money basis. The equity financing came from both existing and new investors, led by Carrick Capital Partners.
The expansion of the existing credit facility brings DailyPay’s revolving secured debt facility to $660m, including the existing commitments of $500m from Barclays and $60m from TPG Angelo Gordon.
The company intends to use the equity funding to further accelerate its continued product innovation and to drive its expansion into adjacent categories and new markets.
Led by Kevin Coop, Chief Executive Officer, DailyPay provides an on-demand pay solution for employers to build relationships with their employees. Users are empowered to take control of their earned pay, enabling them to pay bills on time while avoiding unnecessary fees associated with overdraft, high-interest credit products or payday loans.
The company, which is headquartered in New York City, with operations in Minneapolis and Belfast, partners with employers across various industries, including Fortune 500 companies such as Hilton, Target, Kroger and Dollar Tree.