Employee benefits financial wellbeing business SalaryFinance has secured a £40m investment led by Legal & General and Blenheim Chalcot.
The UK-based company helps employees to improve financial health, consolidate debt and start saving. Through the platform a user can apply for a loan of up to 20 per cent of their salary, with interest rates from 3.9 per cent, to help consolidate debts. Loan repayments are deducted from the borrower’s salary and helps to lower risk and cost, to help with savings.
Some of the company’s clients include employment at Dunelm, Timpsons, Worldpay, Ageas, Saga, Hays, Agilisys and E.ON.
This capital will be used to help SalaryFinance to launch its Financial Wellbeing Hub, which will offer a suite of education, products and services. The platform allows users to understand their financial situation through financial education content, budgeting tools and credit score checks. This will allow them to get salary deductible savings and low interest loans.
A part of the new equity line will be used to support international expansion, with the company planning a move to the US first and then other territories.
SalaryFinance CEO Asesh Sarkar said, “This investment marks the completion of the first phase of our long-term plan, proving that finance can be delivered in a socially progressive way. We looked far and wide for the right investment partners who share in our focus on business with social purpose, and we are delighted to have Legal & General on board alongside Blenheim Chalcot.â€
The company has previously raised a $6.1m venture round from Brightbridge Ventures, which brings total capital raised to around $46.1m.
Last month Blenheim Chalcot provided the mezzanine financing for personal banking platform Cashplus’ £30m funding round.
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