Instant Financial, The App That Lets Employees Access Their Own Pay, Raises $11.4M

Instant Financial, a startup that allows employees to access their pay immediately without waiting for their next check, announced Tuesday that it closed a successful Series A round of funding.

The popularity of fintech and companies like Instant has skyrocketed in the past decade. Meet these industry-changing disruptors and innovators the 2018 Benzinga Global Fintech Awards on May 15 and 16 in New York City.

What Happened

Canada-based Instant Financial raised the U.S. dollar equivalent of $11.4 million in a new investment round, bringing its total financing to date to $15.4 million, the company said in a press release. Instant Financial intends to use the proceeds to support product innovation and better target the more than 80 million hourly workers across North America who wait up to two weeks for a paycheck.

More than 260,000 hourly wage employees are able to retrieve their pay daily through Instant Financial, the company said. The firm's clients include restaurant chains like McDonald's Corporation MCD, Wendy's Co WEN and Yum Brands' YUM Taco Bell.

The funding was led by notable fintech venture capital firm TTV Capital, which will also act as a strategic partner. Other investment firms that participated include ITC Capital Partners, Kinetic Ventures and Real Ventures.

Why It's Important

Instant Financial's mission is to "empower millions of hourly workers by putting employees in control of accessing their pay," said CEO Steve Barha. The platform also benefits employers by offering a a disruptive service that minimizes the need for employees to seek short-term lending options, according to Instant Financial. The company said in 2016 that more than $80 billion in interest and fees is paid to banks and payday lenders by frustrated workers who until now had no alternative.

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