Blending Profit with Purpose, The Fund Achieves 300%+ YoY Growth in AUM driven by strong investor demand and capital inflow
SAN FRANCISCO, June 18, 2024 /PRNewswire-PRWeb/ -- PayJoy, Inc. (PayJoy), the leading lender to the underserved in emerging markets, today announces a significant milestone: the PayJoy Asset Fund (PJAF) has surpassed $130 million in assets under management (AUM) and welcomed its first institutional investor, with a $25M investment. On the heels of financing over $2 billion and serving 11 million customers, this achievement underscores PayJoy's unwavering commitment to expanding financial inclusion globally.
The PayJoy Asset Fund allows qualified investors to invest in PayJoy loans. Investors earn attractive returns while helping underserved customers in emerging markets. By leveraging its proprietary smartphone lock technology (PJ Lock), PayJoy turns smartphones into collateral for lending, reducing default rates significantly and expanding the number of individuals who qualify for affordable credit. Investors in PJAF are attracted to the strong risk-adjusted return and liquidity the fund provides. The assets have a strong track record, producing two to three times cash coverage necessary to pay each investor's preferred return.
"Since 2019, my investment journey with PayJoy has been nothing short of exceptional. I was initially drawn to the strong risk-adjusted returns and liquidity, and the results have exceeded my expectations," shared Josh McFarland, PayJoy board member, partner at Greylock Partners and PJAF investor.
The PJAF management team, which includes Sumeet Wadhera, Bill Yialamas, Camila Perez, and Brad Pennington, has a combined 50+ years of experience in lending and risk management, capital markets and private credit at Citigroup, Deutsche Bank, UBS, Barclays, Moody's Analytics, Prosper Marketplace, and more.
"We are receiving increasing demand from institutional investors, family offices, and wealth managers as we continue to scale," said Sumeet Wadhera, Head of Capital at PayJoy. "The fund is on track to double and grow to over $250 million in the next 12-18 months as we continue to onboard more investors."
"For institutional investors, PayJoy Asset Fund is a unique evergreen structure that combines impact investing, attractive returns, and diversified consumer credit exposure," added Camila Perez, Portfolio Manager of PJAF.
Operating as a Public Benefit Corporation with over 1,000 employees worldwide, PayJoy is dedicated to responsible financing across seven countries (and growing), ensuring a positive impact on its customers' financial well-being. UC Berkeley research has found that customers taking PayJoy loans see a strong improvement in their financial well-being, equivalent to a 6% increase in income.*
"We are incredibly grateful to all of the PJAF investors for their continued support," said Bill Yialamas, Chief Financial Officer at PayJoy. "Bringing on our first institutional investor allows us to open the door to modern financial services to even more underserved people worldwide, helping them improve their financial well-being."
For more information about PayJoy, visit https://www.payjoy.com/.
*According to empirical research by economists from UC Berkeley and Washington University in St. Louis
About PayJoy
PayJoy is a Public Benefit Corporation that provides a fair and responsible entry point for individuals in emerging markets to enter the modern financial system, build credit, achieve economic freedom, and access digital connectivity. Founded in 2015, PayJoy has provided credit to more than 11 million customers across Mexico, Brazil, South Africa, Ecuador, Peru, Panama, Colombia, and the Philippines. PayJoy runs profitably and employs over 1,000 people worldwide. For more information, visit https://www.payjoy.com/.
Media Contact
Kat Madariaga, PayJoy, 9255881610, payjoy@thekeypr.com, https://www.payjoy.com/
SOURCE PayJoy
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