INDONESIA: The most attractive benefit that Wagely, an Indonesian-made app, offers employees is that it allows them to withdraw their earnings on demand, instead of waiting until payday.
The business model of this earned wage access startup proved so successful it was able to raise USD 5.6 million and is expected to reach more than 250,000 users by yearend.
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Founded during the onslaught of the 2020 Covid-19 pandemic, Wagely aims to help middle-income Indonesians in managing their finances, particularly in getting off the debt cycle during these unprecedented times.
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While the pandemic exacerbated financial hardships, more than 75% of Indonesians already struggle to cover unexpected expenses between paychecks, said founder Tobias Fischer.
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“This is the start of a vicious and costly debt cycle that has a long-lasting negative impact on individual financial well-being, which in turn impacts business with higher turnover, lower productivity, and more employee loans,” he added.
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In October of this year, Wagely, expanded into Bangladesh which currently has over 50,000 users.
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It plans to continue to expand to other markets in Asia, by offering customized advice and schemes for employees.
