US-based financial wellness data provider PayActiv has received $20m in series B financing from investors including affiliate funds of SoftBank Capital, an investment vehicle for telecommunications firm SoftBank.
Ziegler Link-Age Fund II, a joint venture between senior data provider Link-age and investment bank Ziegler, also took part in the round, as did private equity firm Generation Partners. John Hawkins, managing partner at the latter, is joining PayActiv’s board of directors.
PayActiv runs a service that allows workers to access portions of their salaries before regularly scheduled paydays, enabling them to manage their finances more efficiently. It also offers budgeting, saving and bill payment tools.
The series B capital will go to expanding the company’s platform and developing additional tools to help the employed overcome financial issues.
John Hopper, Chief Investment Officer of Ziegler Link-Age Fund II, said, “It is an honour to be able to invest in a company like PayActiv. We look forward to helping this much-needed solution expand within healthcare and our various areas of expertise.
“We believe that PayActiv not only represents a great investment opportunity, but also they are a critical service for the millions of employees who are currently paid on an hourly basis.”
A fund affiliated with SoftBank Capital provided seed capital for PayActiv that may or may not have been related to $4.3m it raised in 2014 according to a regulatory filing. Undisclosed investors supplied a further $9.2m for the company as part of an early 2016 series A round.
