Rosaly, a French salary advance fintech startup, has raised $10M in new funding which is $7.5M in equity and $2.5M in debt. Workers can access their wages as they are earned by the company. Rosaly plans to use the funds to expand into new European markets and products.
Fin Capital is joined by The Treasury VC, Haymaker, FJ Labs, Auxxo, LeFonds VC, Clocktower, Kraken Ventures, Audeo Ventures, Sie Ventures, and Moving Capital in its funding round.
Employees in Europe, unlike the majority of the US workforce, are paid on a monthly basis. However, 60% of them live paycheck to paycheck, resorting to overdrafts or personal loans with exorbitant interest rates, trapping them in a long cycle of debt.
The latest round
The company claims that this latest round will further Rosaly‘s mission of using digital solutions to assist HR departments in improving both employee financial well-being and the employer’s overall brand for salary advance or pay on demand, accompanied by a financial education system
Rosaly relationship with employers
Rosaly pays employees whenever they want. Rosaly works with employers to provide financial well-being benefits that improve employee productivity, engagement, recruitment, and workforce retention at no cost or impact to the company’s cash flow.
Rosaly intends to use the funds to strengthen existing partnerships, launch new products on their platform (budget coaching, cashback, and salary savings), and expand into new European markets such as Italy, Germany, and the Netherlands.
Rosaly, founded in late 2019 by Arbia Smiti, has raised its second funding round, bringing their total investment to nearly $12M. Rosaly collaborated with ADP Marketplace, as well as with three of Europe’s largest players in the employee benefits market: Sodexo, Up Group, and the Group BPCE platform: Bimpli. These agreements, in addition to the 150 clients Rosaly already has in France, will improve the financial well-being of 33M employees in Europe and North Africa through digitalized and free access to advance payment.
“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.
“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.
