Earned-wage access (EWA) service provider Paywatch has raised $30 million (P1.76 billion) through a combination of equity and credit facilities to support its growth plans. This funding marks the largest round secured by any EWA player in Southeast Asia.
The funding includes over $14 million (P821 million) from Series A equity investments, led by Third Prime and several US investors, including Vanderbilt University and the University of Illinois Foundation. New investors, Octagon Venture Partners and Wooshin Venture Investment Corp., also participated in the round. Paywatch also secured $16 million (P939 million) in credit facilities from global financial institutions, including Citi, to further its product expansion.
“Amid this funding and tech winter, we take immense pride in the confidence shown by these esteemed investors and banks in our vision,” said Alex Kim, president and co-founder of Paywatch. “From the outset, we firmly believed that providing Earned Wage Access at the lowest, nominal fee to users while ensuring access to major financial institutions was the sustainable path. Although it was a more challenging route to market, our rapid growth and portfolio of high-caliber enterprise clients validate our approach.”
Paywatch’s EWA solution allows employees to access part of their earned wages instantly, before the end of their payroll cycle. This system has proven to reduce reliance on loans, ease household debt burdens, and improve financial management. For employers, Paywatch’s automated system has been beneficial in enhancing employee retention and productivity, translating into significant cost savings in hiring and training.
Philippine market
Since its founding by brothers Richard and Alex Kim in 2020, Paywatch has grown its footprint across four major markets: Malaysia, the Philippines, Indonesia, and South Korea. The company has processed over $58 million (P3.40 billion) in salaries to date, with monthly disbursements nearing $8 million (P469 million), growing by up to 15% month-over-month. By the end of the year, Paywatch aims to more than double its lifetime volume to over $120 million (P7.04 billion) in salaries disbursed.
In 2023, Paywatch entered the Philippine market serving estate developers, luxury hotels, BPOs, and retail brands.
The Philippines represents a pivotal market for Paywatch,” said Rowell Del Fierro, president of Paywatch Philippines. “The positive reception to Earned Wage Access (EWA) in the country is encouraging. The Series A funding underscores our commitment to Filipino workers. This achievement propels our broader impact, enabling us to reach more enterprises who share our vision of financial inclusivity and enhancing the country’s economic resilience.”
Paywatch entered the Philippine market in 2023 and recorded an overwhelming reception with 150% response to roadshows. In the market, Paywatch is the chosen EWA partner of leading real estate developers, luxury hotels, BPOs, manufacturing and retail brands. The rapid adoption of EWA in the country offers Filipino workers increased flexibility in managing their finances and reduces their vulnerability to debt traps.
“The Series A funding underscores our commitment to Filipino workers,” said Rowell Del Fierro, president of Paywatch Philippines. “This achievement propels our broader impact, enabling us to reach more enterprises who share our vision of financial inclusivity and enhancing the country’s economic resilience.”
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