Earned Wage Access Firm Immediate Closes $16 Million Funding Round

Earned wage access company Immediate has closed a $16 million funding round to accelerate its trajectory in the workplace financial health sector.

The funds, which include both growth equity and a working capital facility, will enable Immediate to better serve employees who are facing unexpected expenses and are in need of liquidity before payday, the company said in a Tuesday (July 25) press release.

“The future is bright for Immediate and this round of funding — especially in a volatile economic climate — is a validating indication that we are well-positioned as a leader in the rapidly growing financial wellness market,” Immediate founder and CEO Matt Pierce said in the release.

Immediate is hoping to help employees by providing liquidity when unexpected expenses arise. Through responsible structuring, Immediate aims to foster financial stability in the lives of employees, according to the release.

The funding round was led by Castle Creek Launchpad Fund, a joint fund managed by Castle Creek Capital and Launchpad Capital, the release said. The expanded working capital credit facility was provided by SouthPoint Bank.

“Immediate stands out in Earned Wage Access with a well designed offering that lets employees manage their lives and employers run their businesses,” Launchpad Capital founder and General Partner Ryan Gilbert said in the release. “Partnerships with banks will help employers better address the needs of a modern workforce. We’re excited to back a strong team and product in this vital and growing market.”

PYMNTS research has found that workers are increasingly demanding their wages as they earn them rather than waiting days or weeks before they can access their pay.

Implementing earned wage access is a key way to improve employee loyalty, and it offers companies increased visibility into their cash on hand, helping to improve overall money mobility, according to “The Rise of Instant Payroll and Early-Access Compensation,” the July edition of the “Money Mobility Tracker,” a PYMNTS and Ingo Money collaboration.

In another recent development in the space, workforce payments platform Branch announced on Thursday (July 20) its launch of an instant payment solution that allows companies to pay workers directly to an existing bank account.

The new Branch Direct equips companies with a simple, no-code payments solution that can be set up within days, enabling firms to easily onboard and pay workers at any time.