A FinTech payday startup called Hastee has received a $270 million investment from Umbra Capital Partners, with participation from IDC Ventures and others, according to reports.
Hastee allows workers to get 50 percent of their paychecks up front via the Hastee app. The company funds the withdrawal, and Hastee gets reimbursed on a person’s regularly scheduled payday.
The startup works with employers, is completely free to offer and integrates into already existing payroll and HR systems. Hastee has said it reduces staff turnover and absenteeism, and encourages workers to be more productive.
Hastee works with companies like London City Airport, IRIS, Avery Care Homes and Mitchells & Butlers.
“We are delighted that our investors, led by Umbra, have chosen to partner with us as we bring financial freedom to people across the country,” said Hastee Founder and CEO James Herbert. “This investment will help us support a greater number of organizations in reducing financial stress, increasing well-being and improving the productivity of their employees — and, as a result, their organizations.”
Hastee users get the first withdrawal every month — up to £100 ($129.95 USD) — for free, and every subsequent withdrawal is subject to a transaction fee of 2.5 percent.
“We are proud to be partnering with Hastee in providing this funding, comprising of both equity and a unique credit facility, to support their mission to improve people’s lives, improve company productivity and deliver social good at scale,” said Gustavo Diquez, managing partner at Umbra Capital Partners. “As a modern merchant bank, we are delighted to lead one of the largest [fundraisers] in the data-driven financing space to date, bringing together technology and socially responsible capital.”
The startup was founded in 2017 by Simon Draper and James Herbert. It seeks to help workers with their reliance on payday loans and credit, which the company has said is an epidemic facing employees.
Bobby Aitkenhead, managing partner of IDC Ventures, said the startup’s offerings will change the way workers look at payday.
“Hastee’s ‘liquid payroll’ solution will transform how people spend and control their personal finances,” Aitkenhead said. “Technology enabled solutions like Hastee — which provide users [with] access to their earned pay in real time, and at a very fair cost — will soon put an end to payday lending in their markets. We could not be more excited about joining James and the fantastic group supporting Hastee on this high-impact vision.”