London-based fintech startup SalaryFinance raises $6.1 million

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SalaryFinance, the financial employee benefit service, has raised $6.1 million from FinTech venture builder Brightbridge Ventures to support its customer acquisition strategies and expand its operations team.

SalaryFinance, which was founded this year, offers businesses in the UK a financial employee benefit that allows their staff to consolidate their personal debts and repay them via a low interest, fixed-rate loan. Loan repayments are taken directly from the employee’s payroll, rather than direct debit, reducing the cost and interest rate to around one third of the market average. The service is completely free to employers and allows their staff to reduce their personal debts more quickly. The rate of the loan does not change based on an individual’s income or credit score.

SalaryFinance was founded by former MD of Google UK Dan Cobley, former banking consultant Asesh Sarkar and entrepreneur Daniel Shakhani.

Dan Cobley, CEO of Brightbride Ventures, stated: “We are delighted by the level of employer and employee enthusiasm we’ve seen for SalaryFinance. This has given us the confidence to follow our initial seed investment with a major financial commitment. This funding will help bring the amazing SalaryFinance benefit to working people across the country,”.

Crowdfund Insider wrote on September on previous deals by SalaryFinance – Saga, an over-50s group employing 15,000 people in the UK; Agilysys, the 2,000-strong outsourcing firm working with local councils; and white goods retailer AO.com, which has 2,000 staff members. While this type of lending is already quite popular in other countries, SalaryFinance is seeking to be the best at it: the Google of this industry, one might say.