HR TECHNOLOGY: Employee financial services platform Payd has announced the receipt of fresh funding, amounting to USD 1.7 million, for the expansion of its Southeast Asian operations.
This will include increasing team members, brand-building, and more product and service launches.
IFS Capital, with participation from 1982 Ventures and The Hive Southeast Asia, led the round.
Payd has gained over 20,000 employee sign-ups with increased enrollment rates of up to 25%. Payd has been growing from 120% to 180% month-on-month since July
2021, as more Malaysian businesses are now providing earned wage access (EWA) benefits to their employees.
Founded in 2020, Payd is a comprehensive HR-integrated payroll EWA solution provider where employers can seamlessly offer their staff the freedom to choose when to receive their earnings, thus increasing engagement in the workplace. This ultimately results in higher retention rates and improved financial literacy across the workforce.
The app enables employees to receive a portion of their salary as they earn it without having to ask for salary advances, borrowing from family and friends, or going through payday lenders for short-term cash emergencies. Employees can access up to 50% of their earned income whenever they need it.
Payd co-founder and CEO Justin Kong commented, “In the long run, we hope to be a platform that eases the financial worries of the Malaysian workforce, helping build a better engagement between employers and employees".
“Large and middle-market corporations can consider a well-structured EWA program as an integral pillar of the employee benefits framework," said Renchun Zeng, Chief Executive Officer of IFS Capital Limited. "By empowering financial well-being of their employees, it can positively impact worker productivity, promote retention, and reduce absenteeism, resolving some of (the) employers’ biggest pain points.”