Indonesian fintech startup Wagely raises $23M in debt and equity

Indonesian fintech startup Wagely has raised $23 million in a new funding round, combining both equity and debt. The round was led by Capria Ventures, a venture capital firm known for its investments in applied Generative AI and other successful ventures across the globe. 

According to the company's statement, the raised capital would be used to expand its core Earned Wage Access (EWA) service in Indonesia and Bangladesh.

What does Wagely do? 

Founded in 2020 by Kevin Hausburg, Sasanadi Ruka, and Tobias Fischer, Wagely offers a financial wellness platform that revolutionizes how workers manage their finances. By allowing employees to access their earned wages daily, Wagely addresses the critical issue of financial liquidity between pay cycles. 

The startup claims that the service, which is offered free to employers, has seen substantial growth, with over $25 million disbursed in salaries and nearly one million transactions processed in 2023 alone.

Growth amidst economic challenges

The funding round comes at a crucial time, as Indonesia and other developing countries face significant economic pressures, including a downturn in startup funding. Despite these challenges, Wagely claims that it has served half a million users and expanding its services to include financial wellness beyond earned wage access. 

Wagely business model

Wagely's business model, which includes a nominal fee for early wage access, has proven sustainable and scalable. The startup plans to deepen its reach in existing markets and explore new services like savings and insurance for further expansion.

Notably, It uses generative AI for automated document processing and local language interfaces to enhance financial decision-making for workers.

“The wagely team has demonstrated excellent execution with impressive growth in providing a sustainable and win-win financial solution for underserved blue-collar workers and employers. We see 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,” said Dave Richards, Managing Partner, Capria Ventures.