DailyPay, Digital Onboarding Raise Funds; is VC on the up?
This week has already seen financial services provider for doctors, Panacea, raise US$24.5m in new funding and Vertice, a SaaS and spend management platform generate US$25m in fresh capital.
DailyPay: Funding to fuel expansion
Now, on-demand pay company DailyPay has secured US$175m in new investment, split between US$100m of expanded secured credit facility capacity provided by Citi Group and over US$75m in new equity financing led by Carrick Capital Partners.
DailyPay says its new investment will help accelerate product innovation and its planned expansion into new markets. The fintech leverages on-demand pay technology to help connect employers with their employees, facilitating flexible payment options.
Backing from Citi highlights DailyPay’s growing success, with the fintech already a partner to Fortune 500 firms in the US, including Target, Hilton, Kroger and Dollar Tree.
Digital Onboarding: Solidifying a leading position
Elsewhere, digital engagement platform and SaaS provider Digital Onboarding has closed a US$58m investment round from Boston-based growth equity firm Volition Capital.
The fintech supports the digital engagement initiatives of banks and credit unions, helping established institutions seek out modern solutions to drive customer engagement and product adoption.
With its new funding in hand, Digital Onboarding aims to consolidate its position as an enabler in the US, making mid-funnel customer relationships via digital channels easier for financial institutions to navigate.
What do initial 2024 funding rounds mean for fintech this year?
It’s no secret that fintech funding in 2023 went through a significant dip after a post-pandemic boom in 2021-2022, with investment for FY2023 totalling just US$43m – down by over 50% year-on-year.
Four deals in the space of a week do, however, point to a return to fintech investment for venture capitalists this year, and give analysts and commentators confidence that predictions for a stable investment landscape in 2024 are accurate.
What’s more, the investment market is yet to benefit from tailwinds this year, notably a decrease in interest rates and subsiding threats of a recession. The aftermath of political events will also establish some more certainty too, promoting a more stable environment for fintech investors.
As put by Nigel Morris, Managing Director at QED Investors: “The worst of the fintech winter is behind us, and 2024 will look more like a pre-pandemic 2019.”
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