Earned wage platform Wagely, based in Dhaka and Jakarta has been successful in raising $8.3 million in the pre-A series funding only 7 months after it announced its seed round. This round of funding will be utilized to propel Wagely’s growth in Bangladesh. The platform also plans to become a “holistic financial wellness” platform which will include savings, long-term installment loans, insurance as well as financial education.
With the help of an earned wage platform, workers can access their wages, already earned on their demand, without having to wait out the day till payday. By 2021, Wagely reports that its user base jumped 10 times including distinguished clients like Ranch Market, Medco Energi, British American Tobacco, and Adaro Energy.
With participation from returning investors like the Asian Development Fund, Integra Partners, Global Founders Capital Blauwpark Partners, Trihill Capital, and 1982 Ventures, the total funds raised amounted to $14 million.
There was also backing from Central Capital Ventura which is the venture capital arm of Blauwpark Central Asia, a behemoth in Indonesia’s financial playground. The co-founder and CEO of Wagely, Tobias Fischer, said that BCA has the largest corporate network in Indonesia and it made sense to leverage these corporations as Wagely is actively servicing some of BCA customers.
Wagely chose Bangladesh as its second market because the country had a huge potential for financial growth with similar attractive fundamentals like its model in Indonesia. These include large TAM, demographics, tailored financial services, limited access to credit, and its ability for expansion in the products segment.