Philippine on-demand salary platform Advance secures seed funding

Majority of Filipinos live paycheck to paycheck, with only four out of 10 of those surveyed by the country’s central bank in 2015 having emergency funds for rainy days. There are also an estimated 36 million still borrowing cash for their daily needs, leaving them vulnerable to predatory lenders that charge high interest rates.

This is why Advance, a Manila-based fintech startup, aims to simplify financing for Filipino workers and promote responsible debt management.

From left: Advance chief technology officer Enzo Doromal, chief financial officer Addi Guevara, CEO Jaime de los Angeles, and chief product officer Stef Lim / Photo credit: Advance

Launched early last year, Advance’s on-demand credit platform allows companies to provide their employees with early access to their wages. Its technology plugs directly into existing payroll systems, eliminating the need for businesses to change existing processes.

The company has raised an undisclosed amount of seed funding in a round led by US-based Next Billion Ventures to further improve its platform, develop new products, and enter new markets.

Wavemaker Partners, as well as fintech-focused funds Dymon Asia Ventures and Accion Venture Lab, also participated in the round, according to a statement.

“More than a stopgap measure, early access to salary allows employees to enjoy a broader range of opportunities, no longer held back by financial stress,” said Advance co-founder and CEO Jaime de los Angeles.

The company looks to provide an alternative for cash-strapped Filipinos, who usually turn to payday lenders. “We are not a loan [provider] – our service acts as a financial bridge,” the chief exec emphasized.

In the past 12 months, Advance claims to have provided close to US$3 million to thousands of Filipinos across the country. It was also able to obtain institutional lending capital from major banking players in the Philippines last year.

Looking ahead, the startup wants to serve 1 million employees and 10,000 businesses in the next five years.