Salary Finance, a FinTech financial wellbeing platform for employees, has raised a $20m Series B investment led by founding investor Blenheim Chalcot and multinational financial services company Legal & General.
The money will be used to launch and scale the company in the US as well as to continue to support its growth in the UK.
Salary Finance partners with employers to offer a benefit that helps employees move from debt to savings.
All savings deposits and loan repayments are taken by salary deduction and Salary Finance’s SaaS-based platform works with existing payroll technology and processes.
To date, the company claims to have helped employees save on average £600 in interest and pay off debts six to 12 months sooner.
Commenting on the US expansion, Asesh Sarkar, chief executive of Salary Finance, said: “We are delighted to build on our success in the UK with our U.S. launch. We see the same societal challenges in the U.S., with 40% of American employees lacking any real savings, and carrying personal debt, particularly high-interest debt like credit cards and payday loans. This becomes a never-ending way of life for many, impacting their engagement and productivity at work.”
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Nick Frankland, managing director for FinTech at L&G, spoke about the investment.
“We have been really pleased to continue to support the stellar growth of Salary Finance. It’s a terrific example of a big business and a growing business coming together in an economically and socially useful way.
“The business will grow in size by over ten times this year and being awarded Prince Charles’s BITC Responsible Business of the Year 2018 was a real honour. At L&G we work really hard in support of businesses we invest in and believe that our job is to put patient capital in touch with impatient technology, especially when it creates fantastic benefit for consumers. The success of Salary Finance is a terrific endorsement of that strategy.”
Dan Cobley, chair of Salary Finance and FinTech Partner at Blenheim Chalcot, went on to note: “Since we founded Salary Finance with Asesh Sarkar and Daniel Shakhani in 2015, we’ve seen a strong appetite for the platform from a range of companies that want to help their employees better manage their finances. Founded on strong and authentic social principles and solving real problems for employees, it’s inspiring to see the rapid employer adoption and the difference we are making.”