Activehours Raises $22 Million for Cash Advance Business
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Activehours Raises $22 Million for Cash Advance Business

Activehours Raises $22 Million for Cash Advance Business

It has been just around nine months when tech startup Activehours raised a funding worth $22 million for its cash-advance business, it seems the company has once again convinced the venture capital firms in successfully attracting investment worth $39 million.

The investment was headed by Andreessen Horowitz, with additional participation from existing investors Matrix Partners, Ribbit Capital and March Capital Partners. With this successful fundraising, the company has now raised a total of $65 million since it launched in 2013.

The company, based in Palo Alto, works as a payday lender, using a unique model where it asks users to pay a small voluntary fee to access their money ahead of the actual date of payment.

Activehours has not disclosed the size of its credit limit, but it has indicated that for banks and other investors who are looking for alternative source of gaining higher returns, the cash advance business can be a lucrative option.

An internal spokesperson said that the average tip is capped at around 15 percent, and no user is given an advance of more than $100 at a time. However, the company said that it is addressing a major challenge faced by American salaried workers who are living paycheck to paycheck.

Unlike its immediate competitor FlexWage, Activehours works directly with consumers, instead of employers.

Anirudh Menon
Anirudh Menon
I have adorned multiple hats during my professional journey. My experience of 14 years comes in areas like Sales, Customer Service and Marketing. My journey as a professional writer started 5 years back, when I started writing for an in-house magazine for my employer. Having successfully delivered many in-house projects, it encouraged me to take my skill to the world. As on day, I have written articles, blogs website content for various industries like Information Technology, Start-up, Retail and Government. The subjects that I have covered range from Digital Marketing, SAP Cloud Platform, Cloud Computing, Content Marketing , Politics. Enhancement is a process and I constantly thrive to add more subjects in my portfolio. Over and above content writing, I also train language and communication to students who want to brush up their speaking skills. I am a part time trainer for IELTS coaching and also work as a budding voice over artist.

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