Paywatch Raises KRW 20 Billion in Series A to Expand Salary Advance Services
Reading Time: 2 minutesPaywatch, a provider of advance salary payment services, has successfully raised KRW 20 billion in Series A funding. The round was led by Third Prime, a U.S. venture capital firm, and the Illinois University Foundation, who were also investors in Paywatch’s pre-Series A round. New investors, Octagon Venture Partners and Wooshin Venture Investment, have joined, bringing the total investments to KRW 40 billion to date.
With this capital, Paywatch plans to enhance its services and expand its business into new markets, including Southeast Asia.
Currently, Paywatch is rapidly growing in Korea, Malaysia, and the Philippines. Since its global launch in October of the previous year, the service has processed an average of KRW 11 billion in advance salary payments monthly, with a cumulative transaction volume reaching KRW 80 billion. This volume is the largest among salary advance service companies in Southeast Asia. With the new funding, Paywatch aims to increase its transaction volume to KRW 160 billion by year-end.
Paywatch’s service allows workers in need of immediate funds to access an advance on their earned wages. This initiative has been adopted as a financial welfare benefit by companies, enabling workers to use up to 50% of their monthly salary interest-free, with only a withdrawal fee required.
Companies that have implemented Paywatch, including CU, CGV, Outback Steakhouse, KT Group, and NICE Financial Group in Korea, have noted improvements in employee satisfaction and job stability. Internationally, firms like Shangri-La Group, Coway, BIG Mart LOTUS, Guardian, JAYA Grocer, and Wilmar have also adopted the service.
Michael Kim, a partner at Third Prime who led this investment round, stated, “While salary advance services are well-established as an employee benefit in North and South America, Paywatch is pioneering this change in Asia, where the concept is still new. I am excited to support the expansion of the salary advance service market across Korea and Southeast Asia.” Travis Shore, Chief Investment Officer of the Illinois University Foundation, added, “Given Korea’s unique financial environment and Southeast Asia’s underdeveloped financial infrastructure, the Paywatch service plays a crucial role in solving financial exclusion issues.”
Hwi-jun Kim, CEO of Paywatch, expressed his pride in securing investments from prominent global venture capitalists and the financial sector during challenging economic times. He confidently stated, “Our service will greatly enhance financial accessibility for low-income workers struggling economically. We are focused on expanding globally and developing products and services that offer financial benefits to everyone.”
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