CPE News (9.19.2023) – ZayZoon has announced the closing of US $34.5 million Series B debt and equity funding, consisting of US $20 million in debt and US $14.5 million in Series B preferred share financing.
The Series B, which closed in late August, was led by Framework Venture Partners, with co-investment from Export Development Canada (EDC) and participation from ATB Financial and existing shareholders from Canada, USA, and Switzerland.
This financing will support recruiting efforts and continued growth and innovation for the company.
photo credit: ZayZoon
ZayZoon Raises $34.5 Million in Series B Funding to Expand EWA, Employer Engagement Platform
Led by Framework, the round will support ZayZoon’s ambitious expansion plans to serve small and midsize businesses across United States
September 19, 2023 09:00 AM Eastern Daylight Time
PHOENIX–(BUSINESS WIRE)–ZayZoon, the Earned Wage Access (EWA) provider for small and mid-sized businesses, has raised $34.5 million USD in debt and equity for its Series B financing. The round was led by Framework Venture Partners, with co-investment from Export Development Canada (EDC) and participation from ATB Financial as well as existing shareholders. This financing will support recruiting efforts and continued growth and innovation for the company.
“This financing will fuel our mission in being a true partner in financial health and workplace engagement to small and midsize businesses,” said Darcy Tuer, Co-Founder and CEO of ZayZoon. “Not only does ZayZoon act as a substantial competitive advantage for the business, but it helps the millions of Americans living paycheck to paycheck get by between paydays and plan for the future.”
With 63% of Americans living paycheck to paycheck, EWA provides employees with financial stability, and helps employers support increased financial education and wellness for their teams. As an EWA provider designed to support the specific needs of SMBs, this funding will help support enhanced resources and features for employees, and for employers in industries like hospitality, retail, food service, and many others who are feeling the pinch from a continued worker shortage.
“ZayZoon is making a tangible, positive difference in the financial health and futures of their customers and families,” said Ajay Gopal, Partner, Framework Venture Partners. “We’re excited to partner with ZayZoon at such a pivotal time in the company’s history and look forward to supporting its continued growth and impact on the communities it serves.”
Year-over-year, ZayZoon has seen more than 400% growth in payouts, fueled by their substantial growth and expanding customer base. With national popularity across franchisees and locations including Dunkin’, McDonald’s, and Amazon Warehouses, in addition to larger corporate customers like LIDS, ZayZoon has turned early momentum into widespread EWA adoption and sustained expansion. This expansive and persistent growth represents a clear and emerging demand for EWA and employee engagement platforms among an SMB audience.
Payout options and other features have also seen significant investment and expansion. Based on demonstrated demand for more flexibility of when and how customers can access their wages, ZayZoon has grown their list of payout options to include bank deposits, debit cards, and fee-free payout options like Instant Gift Cards, Gas Cards, and more.
ZayZoon’s list of corporate partners has also expanded significantly due to a strong focus on seamless integrations in existing payroll and HR infrastructure. In 2023, ZayZoon was notably named an ADP and PrismHR Marketplace Partner of the Year.
To learn more about ZayZoon and Earned Wage Access, please visit: www.zayzoon.com.
ZayZoon is the financial empowerment platform for small and mid-sized businesses. With ZayZoon, payday finally comes with the push of a button. It’s free for employers and takes only 30 minutes to implement. Employees can use ZayZoon to get paid whenever, however. The platform also offers educational resources and tools to help workers break the paycheck-to-paycheck cycle. And it works. 89% of employees who use ZayZoon report less financial stress, and employers who offer ZayZoon boast a 29% reduction in turnover. Visit ZayZoon at: https://www.zayzoon.com/
About FRAMEWORK Venture Partners:
Established in 2018, FRAMEWORK is a world-class venture capital partnership that backs purpose-driven startups. FRAMEWORK’s dynamic approach to investment empowers exceptional founders and their teams on the path to becoming the next generation of world-class technologies. Headquartered in Toronto, Canada with presence in Montreal, QC and Austin, Texas, FRAMEWORK combines operational expertise with a data-driven investment strategy–forming a unique, collaborative model of active capital that supports management teams on their scaling journey. The company is also committed to cultivating improvements in the venture capital ecosystem for all founders and investors through the Startup Scorecard and Investor Network.