Indonesian fintech start-up Wagely lands $23m in mix of equity and debt financing
Indonesia-based financial wellness app Wagely has secured $23 million in a mix of equity and debt financing to fuel its growth across Southeast Asia.
Wagely secures $23m in mix of equity and debt financing
Wagely provides businesses with an earned-wage access (EWA) solution that enables employees to access their pay after each workday, helping workers to bridge financial gaps between paycheques.
The Jakarta-headquartered fintech claims that in 2023, it dispersed over $25 million in salaries and served nearly 500,000 workers in Indonesia and Bangladesh.
The equity portion of the funding round was spearheaded by Capria Ventures, a US-based venture capital firm specialising in the Global South, with additional participation from existing investors.
Wagely says that the equity funding was “further accompanied by a significant contribution from a notable private debt fund aimed at expanding Wagely’s core EWA service in Indonesia and Bangladesh“.
Founded in 2020, the start-up plans to use the new funds to expand its core offerings as it aims to boost employee financial wellness in its primary markets.
Dave Richards, a managing partner at Capria Ventures, explains the company sees a “huge opportunity” for Wagely to “apply Generative AI across multiple use cases, such as automated document processing and local language conversational interfaces for workers to make better financial decisions”.
Alongside the new cash injection, Wagely revealed a transition in leadership last week, with co-founder and former COO Kevin Hausburg taking the helm as CEO, succeeding Tobias Fischer. The firm attributes Fischer’s departure from the role to “family health matters”.
In Indonesia, there have been recent endeavours by several players to capitalise on opportunities in the fintech space. For instance, last month, Singapore-based private investment platform Helicap and Indonesia’s Bank Danamon joined forces to establish a “one-stop solution” for MSMEs.
