SoftBank backs London-based “ethical business” which offers early salary payments

A London-based fintech, which offers early salary payments, has been sold to a finance firm backed by SoftBank.

The founders of the “ethical fintech business”, which is looking to revolutionise the way salaries are paid, are set to make millions from the sale.

The fintech, called Freeup, has been sold to Greensill, after Greensill received $665m (£510m) in new funding from SoftBank, the Japanese conglomerate.

SoftBank's tech investment fund Vision Fund has made the investment in Greensill, after it made an initial $800m (£622m) in the business last year.

The investment comes at a challenging time for SoftBank after the failed public offering of office space provider WeWork, which SoftBank largely bankrolled.

Freeup, founded in 2015, uses technology which enables employees to receive early payment for earned wages at no extra cost. Companies can offer the perk to employees.

Freeup was set up by Reuben Saxon, 35, a former consultant at Accenture, David Townsend,49, a former executive at Funding Circle and Marta Krupinska, 31, Google's Head of Startups.

Freeup is expected to launch its product in the next few weeks.

Greensill was set up in 2011 by Lex Greensill, 42, who previously worked at Morgan Stanley. David Cameron is an adviser to the company.

Greensill has raised more than $1.7bn in the past 14 month, and the latest funding will take its valuation to just under $4bn.

No financial details of the deal to sell Freeup to Greensill have been disclosed, but according to The Sunday Times, the deal could net Freeup’s founders millions.