Earned Wage Access Provider ZayZoon Raises $25.5M to Bring Financial Flexibility and Empowerment to All Employees as a Standard Benefit
- Fundraising News
- 03.08.2022 02:50 pm
ZayZoon, a provider of voluntary benefits that allows employees across the United States to instantly access their earned wages on-demand, is pleased to announce a series of financings that total $25.5 million in aggregate, consisting of $12.5 million in equity and $13 million in a new credit facility with ATB Financial.
This current round of equity, led by Carpae Investments and Alpenglow Capital, brings the total equity raised by the company to $25 million. This round also saw participation from existing shareholders which include InterGen Capital, Prairie Merchant Corporation, and angel investors Sanders Lee (Hopewell) and Rob Ohlson (Maillot Homes), among others. Though almost all of the company's funding has originated from Canadian investors, the more than 3,000 businesses using ZayZoon to offer their employees quicker access to pay are located in the United States.
The majority of working Americans experience cash-flow shortfalls that can require them to seek out undesirable solutions to bridge the gap until the next payday. ZayZoon's core product Wages On-Demand gives employees access to wages that they have already earned but would otherwise have to wait until their next payday to receive. When the alternatives are high-cost options such as late bill payments, overdraft fees, and payday loans, financial options like Wages On-Demand are increasingly a critical service for millions of Americans.
In less than three minutes, an employee can sign up and access their earned wages instantly to their existing bank account or other available wallet options for little or no cost.
Businesses partner with ZayZoon to improve employee recruitment, retention and overall workplace productivity. With more than 100 payroll integrations, including being a Platinum Partner on the ADP Marketplace, over 60 per cent of businesses across the United States can activate ZayZoon for their employees in less than 60 minutes at zero cost and with no administration required. Partnerships like these have enabled ZayZoon to provide its services to thousands of employees at franchises like McDonald's, Burger King, Senior Helpers and Choice Hotels.
Jamie Ha, co-founder and CFO of ZayZoon, says, "We are extremely excited to see the tremendous level of interest and support for this important offering for both employers and employees. With this financing, we are positioned to bring ZayZoon's Wages On-Demand service to millions of people across America, especially during a phase when hardworking employees need it the most."
This round of financing opens the doors of opportunity to further expand ZayZoon's product offering beyond Wages On-Demand and into additional products and services that financially improve employment outcomes and financial wellness. Furthermore, it enables ZayZoon to pursue hiring for key roles across Growth, Operations and Engineering.
Marcos Lopez, Principal of Alpenglow, says, "ZayZoon has proven the value it can bring to millions of employees and their employers through a unique distribution channel. We are excited to see the team continue their impressive growth and the use of their product by more employees and employers, helping them efficiently access their earned wages more effectively."