Thursday, January 13, 2022
Paywatch raises RM21.9mil in seed funding to support growth in Malaysia, South Korea and Hong Kong
KUALA LUMPUR: Paywatch Global Pte Ltd, an earned wage access (EWA) service provider, has raised RM21.9 million in a seed funding round led by US venture capital firm Third Prime and prominent family offices in Singapore and Hong Kong.
Operating in Malaysia, South Korea, and Hong Kong, the company plans to use the fresh funds to grow its presence in existing markets further and accelerate expansion efforts into new Southeast Asian markets, including Indonesia and the Philippines.
"Paywatch aims to promote financial inclusion by helping workers achieve financial security and gain financial access to major banks.
"For companies, our flexible payroll system has made them more competitive in attracting talent and increased retention in the face of the 'great resignation'" Paywatch founder and chief executive officer Richard Kim said in a recent statement.
Apart from Third Prime, SparkLabs, Won & Partners, and CTK Investments also participated in this seed financing round.
With this seed financing, Paywatch welcomes Third Prime as a new partner.
"The team at Third Prime has an exemplary record of actively helping emerging fintech companies to scale and drive value for end-users," said Paywatch co-founder and president Alex Kim.
"We are excited to leverage their experience and expertise at this time of rapid growth for Paywatch," he said.
Paywatch is the only EWA service provider in Asia that works with top banks - such as Hong Leong Bank Bhd in Malaysia and Hana Bank in South Korea - to provide workers access to their earned wages, in real-time, before pay day.
In Malaysia, Paywatch has been recognised by the UN Capital Development Fund, Bank Negara Malaysia and Malaysia Digital Economy Corporation (MDEC) for its financial inclusion initiatives.
In addition to providing liquidity to the workforce, Paywatch also serves as a bridge that offers its underbanked users with direct financial access to reputable banks.
To date, Paywatch has integrated with five established financial institutions across Asia.
Paywatch's unique system reduces the default risk on workers, which enables those workers to bank with top-tier financial institutions and disrupts high-interest payday lending practices.
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