Payroll services provider DailyPay prepares for 2025 US IPO, sources say
Jan 31 (Reuters) - DailyPay, a financial services firm that helps workers access their pay early, has kicked off preparations for a potential U.S. stock market listing that could come as soon as the second half of the year, according to people familiar with the matter.
The New York-based company is in talks to hire investment bankers for its planned initial public offering that could value the company between $3 billion and $4 billion, the sources said.
The sources, who requested anonymity as the discussions are confidential, cautioned that DailyPay's IPO plans are subject to market conditions and have not been finalized.
DailyPay declined comment.
DailyPay's plans to go public come as a handful of big names in the financial services industry, including Chime and Klarna, are preparing for stock market launches later this year on an improved outlook for equity capital markets.
Founded by fintech entrepreneurs Jason Lee and Rob Law in 2015, DailyPay operates a digital wallet that lets workers access their wages as they earn them, instead of having to wait for paychecks on a fixed date. DailyPay, which charges its customers a small fee for the service, counts the likes of Target (TGT.N), opens new tab, Kroger (KR.N), opens new tab and Hilton (HLT.N), opens new tab among its clients.
DailyPay's other offerings include a suite of financial wellness products, as well as tools that help reduce employee turnover and boost worker productivity, according to its website.
The financial services startup was last valued at $1.75 billion in January 2024, when it raised $75 million from investors led by Carrick Capital Partners. Boutique investment bank FT Partners advised DailyPay at the time.
Earlier in January, DailyPay hired former Uber Chief Financial Officer Nelson Chai as its executive chair. Chai helped take the ride-hailing giant public in 2019.
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