Wagely Raises $5.6M for Earned Wage Access in Indonesia

Wagely Secures $5.6 Million in Strategic Funding

The proliferation of earned wage access (EWA) platforms globally continues, offering workers the ability to access their earnings before their scheduled payday. Indonesian EWA startup wagely has recently announced a successful funding round, securing $5.6 million in strategic investment.

This funding round was spearheaded by Integra Partners, previously known as Dymon Asia Ventures. Additional investors participating in the round included ADB Ventures, PT Triputra Investindo Arya, Global Founders Capital, Trihill Capital, 1982 Ventures, and Willy Suwandi Dharma, formerly the president director of PT Asuransi Adira Dinamika.

Founders and Growth Trajectory

Established in 2020 by former employees of prominent Southeast Asian tech firms, wagely anticipates exceeding 250,000 users within the current year. Tobias Fischer, the CEO, previously managed regional lending programs at Grab Financial Services Asia.

Sasanadi Rukua, the CTO, brings extensive experience as a former vice president of engineering at Tokopedia. Their combined expertise is driving the company’s rapid expansion.

Addressing a Critical Financial Need

According to Tobias Fischer, the founders observed a significant challenge faced by Indonesians: effective cash flow management. They identified this as a primary financial concern for individuals with lower and middle incomes.

Even prior to the pandemic, over 75% of Indonesians found it difficult to manage unexpected expenses between pay periods. Many rely on loans from family or friends, but alternative options often involve high-interest payday lenders, sometimes exceeding 360% APR.

The Cycle of Debt and Wagely’s Solution

Fischer emphasizes that this reliance on expensive credit creates a detrimental cycle of debt. This negatively impacts both individual financial well-being and business performance through increased employee turnover and reduced productivity.

Currently, over half of employees at companies utilizing wagely’s services actively use the platform multiple times each month. They leverage it to monitor daily earnings and access their accrued wages as needed.

Expanding Financial Wellness

wagely’s long-term vision extends beyond EWA. The company aims to develop a comprehensive financial wellness platform for lower- and middle-income workers.

This platform will incorporate additional financial tools, including savings options, insurance products, and intelligent spending management features.

The Growing EWA Landscape

A growing number of companies worldwide are embracing flexible payment schedules for their employees. Other notable EWA platforms include Gusto Cashout, DailyPay, Wagestream, Minu, and Even.

Within Indonesia, wagely faces competition from companies like GajiGesa and Gajiku.

Market Leadership and Future Plans

wagely asserts its position as the pioneer of the EWA category in Indonesia and currently holds the leading market share. The company serves over 50 major organizations, including state-owned enterprises and multinational corporations.

The newly acquired funding will be strategically allocated to expand wagely’s sales force, enabling the company to secure additional enterprise-level contracts.

Current clients of wagely include PT Bentoel Internasional Investama Tbk (British American Tobacco), PT Supra Boga Lestari Tbk (Ranch Market), PT Mustika Ratu Tbk, and PT Kencana Energi Lestari Tbk.

Positive Impact on Businesses and Employees

Wilson Maknawi, president director at PT Kencana Energi Lestari TBK, highlighted the benefits of wagely’s platform. He stated that it provides employees with financial stability, which is vital for the long-term resilience of the business.

He further noted that wagely’s implementation required no alterations to existing payroll processes and has demonstrably increased business savings while helping employees avoid predatory lending practices and improve their financial literacy.