DailyPay sets goal for 2025 IPO
Earned-wage access company DailyPay has a goal of going public in 2025, CEO Kevin Coop tells Axios.
Why it matters: The conversation comes after the company's valuation rose 75%, to $1.75 billion, in a recent fundraise.
What they're saying: "All things being equal, in a perfect world, we would list at some point in 2025," he said. "That's the aspiration, but it depends on a lot of factors we don't control.
- "I think we are of the scale and size that we certainly could go public today if the market were open. But we don't really think that the market is in position," he added.
How it works: Working through major employers, DailyPay allows employees to access a portion of their paychecks early.
Details: The company is now cash-flow positive, says Coop. It also has hit over $300 million in ARR.
- The New York-based business announced last week that it had raised $75 million in equity funding led by Carrick Capital Partners, along with $100 million for a secured credit facility from Citi.
- That capital is being used in part to expand internationally.
What we're watching: Officials are sketching out lines for how this new world of EWA should be regulated.
- The CFPB recently signaled plans to issue guidance on how existing consumer protection lending laws apply to the sector, with director Rohit Chopra noting that not all providers are structured the same.
- DailyPay, meanwhile, has argued against labeling EWA as lending.
- "DailyPay is open to collaboration and actively seeks to work with regulators in D.C. and across the country," a spokesperson said in a statement. "Painting EWA with a broad credit brush, however, will work against the hardworking people who need it most."