Wagestream secures £15m from Northzone and Wonga backer Balderton

In addition, the venture snagged a credit facility of up to £25 from Shawbrook Bank.

Wagestream launched in September last year, a week after payday lender Wonga went into administration, vowing to put an end to the payday poverty cycle by letting employees access their wages early. 

The company launched with the backing of more than £4 million in funding from, among others, Village, a VC backed by big name tech billionaires such as Bill Gates and Jeff Bezos.

At £40 million, Wagestream says the total amount raised in its latest funding round marks the largest single social impact investment to date in the UK.

The company allows staff to draw down a percentage of their earned wages any day of the month for a flat £1.75 fee and counts Camden Town Brewery, Slug & Lettuce and Carluccio’s as customers.

Peter Briffett, CEO and co-founder, said: “The feedback we are getting from private companies and public sector customers alike is that staff are happier, more productive and have greater financial security once they start using our service. The antiquated monthly pay cycle inflicts huge financial damage on household finances and its days are numbered.

“Too many people are pushed into a corner by in-work poverty and forced into the hands of payday lenders and high-cost credit. Wagestream is at the point of scaling up rapidly and this historic investment is going to accelerate the pace at which companies across the country liberate their staff from payday poverty and the disastrous social consequences that stem from it.”