Paywatch, an earned-wage access (EWA) service provider in Asia, has secured US$30 million (approximately RM141 million) in funding.
The company raised over US$14 million (around RM65 million) in Series A equity investment, led by Third Prime and a group of US investors, including Vanderbilt University and the University of Illinois Foundation.
New investors such as Octagon Venture Partners and Wooshin Venture Investment Corp also participated in the funding round.
Additionally, Paywatch secured US$16 million (around RM75 million) in credit facilities from global banks, including Citi, to support its product expansion.
Paywatch offers an innovative, debt-free EWA solution, allowing employees to access a portion of their earned wages in real time before the end of their payroll cycle.
This service has significantly reduced employees’ reliance on loans, improved financial management, and alleviated household debt.
For employers, Paywatch’s automated system has enhanced employee retention and productivity, leading to substantial cost savings.
The company has partnered with several prominent Malaysian brands and institutions, including Lotus, Jaya Grocer, QSR Brands, FFM Berhad, PayNet, Shopper360, Guardian, Corus Hotel, Llao Llao, Coway, Media Prima, University of Nottingham Malaysia, UNITAR, and Durioo.
Founded by brothers Richard and Alex Kim, Paywatch has processed over US$58 million (approximately RM273 million) in salaries to date, with monthly disbursements nearing US$8 million (around RM37 million).
The company anticipates surpassing US$120 million (more than RM518 million) in disbursed salaries by the end of the year, making it the largest EWA service in Asia by transaction volume.
Since its establishment in 2020, Paywatch has expanded into four markets: Malaysia, the Philippines, Indonesia, and South Korea. With the recent funding, the company plans to enter new markets and develop additional financial tools for its users.
“Amidst this funding and tech winter, we take immense pride in the confidence shown by these esteemed investors and banks in our vision. 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,”
said Alex Kim, President and Co-founder of Paywatch.
