PALO ALTO, CA, Activehours, the company that makes any day a payday, today announced that it has raised $22 million of funding through a combination of debt and equity.
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The round was led by Matrix Partners, with participation from March Capital Partners as well as continuing participation from Ribbit Capital, Felicis Ventures, and other existing investors. The news comes on the heels of significant company momentum, including Activehours' strategic integrations with Uber and a retail partnership with Sears Holdings. The round will be used to grow the team and continue its momentum in helping more workers to avoid the pitfalls of fees caused by the paycycle delay.
Activehours is a mobile app that gives people access to their pay quickly and easily, whenever they need it. More than $1 trillion of pay is held up because of pay cycles. Meanwhile, Americans pay over $100 billion a year in overdraft and late fees. By letting people access their pay without waiting for payday, Activehours enables more financial control and helps people pay their bills on time and avoid late and overdraft fees.
'With today's technology, we can actually pay people faster than daily,' said Ram Palaniappan, founder of Activehours. 'Think about it. When you shop, you pay at once. When you go out to eat, you pay at once. But when you work, you wait two weeks to get paid. Activehours is a better way to get paid, and people are taking notice.'
Activehours allows people to access their pay for hours they've already worked, but haven't been paid for yet. The app is available to anyone who has a checking account, regardless of their employer. Additionally, there is no fee or interest charged for using the service. Instead, every time a person uses the app, they are given the opportunity to pay what they believe is fair for the service. Any money given helps to support the community of people who use the app.
'The Activehours team has created an incredible product that taps into a very real consumer need,' said Dana Stalder, General Partner at Matrix Partners. 'People want to be assured they can access payment for completed work hours at a price that will always work for them. Activehours relieves stress and financial strain in an innovative way, and we are excited to help the company scale to help more workers.'
Since launching in 2014, Activehours has grown from working with people from 100 companies to working with individuals from over 12,000 companies. Activehours is leading the revolution of the payroll industry.
'Activehours embodies the type of company in which March Capital looks to invest - innovating in transformative technologies and services that create major shifts in the way we work and live,' said Jamie Montgomery of March Capital Partners. 'Together with our investor partners, we look forward to supporting and accelerating Activehours' development, expanding access to the payments cycle and empowering employees with more options to manage their money.'
Activehours is the new, faster way to get paid. Unlike the traditional two-week pay cycle, Activehours unlocks your pay by giving you the money you've already earned when you need it most -- any time, any day. With Activehours, you choose when to get paid for the hours you've already worked, finally giving you control over your finances. Founded in 2013, Activehours is driving consumer-empowered finance through mobile technology by breaking open more than $1 trillion held up in America's pay cycle. Current funding partners include Matrix Partners, March Capital Partners, Ribbit Capital, Felicis Ventures, Trinity Ventures, Thrive Capital, and Camp One Ventures. For more information on Activehours or to download the app, please visit www.activehours.com.
About Matrix Partners
Matrix Partners works with visionary founders of early-stage startups to amplify their potential. Our general partners blend deep experience with personal commitment to support founders from start to success. Recent Matrix investments include Oculus VR, Zendesk, Hubspot, Acacia Communications, Polyvore, Lever, Poynt and Namely. Founded in 1977, Matrix Partners has East and West Coast offices (San Francisco and Cambridge) as well as offices in Shanghai, Beijing, Mumbai, and Bangalore. Find out more on www.matrixpartners.com and @MatrixPartners.