Fin Capital leads $10M Seed funding for Pay-on-demand FinTech startup Rosaly

Rosaly, an innovative social impact B2B/C Corp, has raised $7.5m in equity and $2.5m in debt, for a total of $10m in a Seed Round led by Fin Capital. This latest round will further implement Rosaly’s mission to help HR departments at companies improve both the financial well-being of employees and the employer’s overall brand with digital solutions for advance payment on salary, or pay on demand, accompanied by a system of financial education.

“We are excited to lead Rosaly’s Seed round in helping provide the European workforce digital access to financial education, earned wages, and wellness. We invested in DailyPay, the category winner in the US and we are convinced that Rosaly will become the leader in Europe,” said Logan Allin, Managing Partner at Fin Capital, who will join Rosaly’s board.

Fin Capital’s funding is accompanied by The Treasury VC, Haymaker, FJ Labs, Auxxo, LeFonds VC, Clocktower, Kraken Ventures, Audeo Ventures, Sie Ventures and Moving Capital. This is an indication of the increasing momentum for on demand pay fintech platforms.

Unlike the majority of the US workforce, employees in Europe are paid on a monthly basis. However, 60% of them live from paycheck to paycheck and resort automatically to overdraft or personal loans with extremely high fees that traps them in a long cycle of debt.

Rosaly is the first B2B app in Europe that lets employees get paid whenever they want. Rosaly partners with employers to offer financial well-being benefits that help improve employee productivity, engagement, recruitment, and workforce retention, with zero cost or impact on company cash flow.

In a time of crisis, inflation, and the rapidly increasing costs of living, Rosaly helps all companies retain their employees and reduce churn while simultaneously allowing employees to access their wages exactly when needed, creating greater stability and financial well-being.

Founded in late 2019 by Arbia Smiti, this is the second funding round Rosaly has raised, increasing their total investments to nearly $12M. Rosaly partnered with the world leader in payroll, ADP Marketplace, and has also developed partnerships with three of the biggest players in the employee benefits market in Europe: Sodexo, Up Group, and the Group BPCE platform: Bimpli. These agreements will improve the financial well-being of 33 million employees in Europe and North Africa thanks to digitalized and free access to the advance payment in addition to the 150 clients Rosaly already has in France.

Rosaly plans to use the funding to strengthen their existing partnerships, launch new products on their platform (budget coaching, cashback and salary savings) and expand their services into new European markets including Italy, Germany, and the Netherlands.

“Rosaly is on a mission to help millions of people live happier, healthier financial lives. By helping employees manage debt, build savings habits, and access earned pay, we are aiming to create a more accessible alternative to traditional financial services providers. Payroll Initiated Banking for Blue Collar Workers is a revolution we are starting in France to spread to all of Europe and beyond,” said Rosaly Founder and CEO, Arbia Smiti.