Today, financial wellbeing platform Payd has just announced that it has raised USD 1.7 million (RM7.5 million) in a seed funding round to expand its Southeast Asian operations, fuelling the growth of the region's financial tech market. The round was led by IFS Capital, with participation from 1982 Ventures, The Hive Southeast Asia, a recipient of the Dana Penjana Nasional programme, Delight Capital, and Antler.
Payd is on a mission to build the largest mobile financial wellbeing platform for employees, all over Southeast Asia.
Towards this end it will be deploying its funds towards brand building, team expansion to accelerate product development, as well as to launch more innovative products and services in the coming months. High net worth angel investors also participated in the funding round.
To date, Payd has garnered over 20,000 employee sign ups, and has witnessed an increase in enrollment rates of up to 25%. This mirrors the consistent success of the brand since its inception, Payd has been experiencing a growth of 120 to 180% month-on-month since July 2021, as more Malaysian businesses are now choosing to provide EWA benefits to their employees.
"This funding exercise is a watershed moment for Payd. We are grateful for our partners' trust and confidence as we continue to build and launch Payd. In the long run, we hope to be a platform that eases the financial worries of the Malaysian workforce, helping build a better engagement between employers and employees." - Payd CEO and Co-Founder, Justin Kong.
Founded in 2020, Payd is a rising comprehensive earned wage access (EWA) solution provider. Through this B2B2C platform, employers can now seamlessly offer their employees the freedom to choose when to receive the money that they have earned, thus increasing engagement in the workplace, ultimately resulting in higher retention rates and improved financial literacy.
Utilising a framework that is easily integrated with any organisation's Human Resource (HR) and payroll system, employees will now be able to access up to 50% of their income whenever they need it. Companies that are currently partnering with Payd include, Zecon, myTukar and Tropicana.
"We are excited for the opportunity to invest in Payd and deliver EWA solutions to the Southeast Asian market. Large and middle-market corporations can consider a well-structured EWA program as an integral pillar of the employee benefits framework. By empowering financial well-being of their employees, it can positively impact worker productivity, promote retention, and reduce absenteeism, resolving some of employers' biggest pain points. This service is in line with IFS Capital's goal of empowering businesses with access to capital through simple and affordable solutions." - Chief Executive Officer of IFS Capital Limited, Renchun Zeng.
Financial tension is a universal source of stress, and it is one that is faced by a majority of employees. For Malaysia in particular, financial stress has increased by 35% in 2021, with 65% of Malaysians believing that this has affected their job performance, while another 41% have admitted that this has also taken a toll on their mental health. Furthermore, the ongoing COVID-19 endemic has brought about other issues such as households losing jobs and sources of income. The nation has also recorded the largest household debt level in Southeast Asia and the second highest in all of Asia.
In light of the above alarming statistics, Payd looks to change and disrupt the salary market for the better, bringing stately solutions to financially stressed Malaysian employees and employers. On-demand, quick and easy, the B2B platform gives employees the freedom to view their earnings and choose when to get paid, without having to wait for payday.
"The access to earned wage has become increasingly trendy across a number of industries. Among the many factors driving this growth includes the lowering of household incomes and the rise of inflation. The recent pandemic only amplified the need for financial freedom." - Co-founder of Payd, Darvesh Daswani.
Payd remains zero cost to businesses while only charging a minimal withdrawal fee. Offering a fully-integrated solution to businesses, Payd looks to change the lives of over 14.4 million people in the Malaysian workforce. To find out more about Payd, please visit https://justpayd.com/
Founded in 2020, by Justin Kong and Darvesh Daswani, Payd is a B2B platform that allows employers to give their employees the company benefit of Earned Wage Access. This enables employees to receive a portion of their salary as they earn it without the embarrassment of asking for salary advances, borrowing from family and friends, or going through payday lenders. With Payd, employees can access up to 50% of their income whenever they need it. With Payd's tech solution, anyone with a smartphone can have access to short term financing whenever they are in need of it. Its future roadmap includes savings products, financial literacy tools.