Playter Pay, a London-based financial technology start-up, announced Tuesday that it has received £1 million (approximately US$1.3 million) in funding from a number of investors.
Unfortunately, Playter Pay did not mention the investors who made the latest funding. But, it looks like it’s the third funding round he’s gotten.
Because, since it was founded by Jamie Beaumont under the company name ImployApp Limited in May 2018, Playter Pay has received two times the funding before it just received it.
The first funding of £300,000 (US$413,000) in pre-seeds was obtained by Playter Pay in July 2019, then a seed round of £500,000 (US$688,000) was raised in October 2020.
The newly acquired funding is the third. Playter Pay management stated that the funding is in the form of debt and equity which will be used to strengthen its business as a provider of employee recruitment loan funds for small and medium enterprises.
So, the concept is that small and medium-sized businesses don’t have to think about the costs of paying a recruiting agency in full up front to find talented employees.
As with the “Buy First Pay Later” concept, the fees for recruitment agencies will be paid first by Playter Pay, while small and medium enterprises reimburse for six months in installments.
“Playter Pay presents a truly unique solution, which allows agencies and small and medium enterprises to focus on finding the best talent,” said Beaumont in London, Tuesday (9/2).
The “Buy First Pay Later” business model has indeed developed quite a bit around the world recently. Mostly for the purchase of goods and travel tickets. Playter Pay applies this business model to different opportunities, namely employee recruitment.
Armed with this business model, Beaumont stated that several fast-growing technology start-ups in the UK have committed to partnering with Playter Pay. The largest, in fact, offers up to £20 million (US$27.5 million) in revenue annually.
Such a concept is believed to disrupt a historically slow moving industry. What’s more, while the recruiting room has adopted new technology over the years, there has been little evolution in its financing.
“We are pleased to invest in what we think will be a game changer for the hiring industry,” said a representative from the consortium of investors, on condition of anonymity, in an official company explanation.
The labour recruitment industry in the UK itself this year will be very challenging after 2020 has fallen significantly. Based on the Recruitment and Employment Confederation (REC) data released in January, the number of permanent workforce placements in 2020 fell 19%, while the placement of honorary staff and daily contracts fell 30%.
In fact, according to REC, the recruitment industry in 2019 could place around 1 million permanent employees and more than 985 temporary and contract workers assigned every day. Also, it contributed £42.3 billion (US$58.2 billion) to the country’s economy.