DEAL: Earnipay Receives $4M Seed Funding to Provide On-Demand Pay to Employees in Africa

Earnipay, a financial technology solutions startup, received a $4 million funding round to provide flexible, on-demand access to employees

The funding round was led by Canaan and also saw participation from XYZ Ventures, Village Global, Musha Ventures, Platform Ventures, Voltron Capital and Paystack.

The platform which officially launched in January 2022 wants to use the new funding to improve the financial well-being of employees by partnering with employers and integrating seamlessly with their payroll systems to offer its services to employees. , who can then track and withdraw their accrued wages. through the app.

What they say about funding

Nonso Onwuzulike, CEO of Earnipay, said that fintech helps to solve problems related to financial worries, which are usually the cause of distractions in the workplace due to the payment salary structure in most organizations.

He said, “The monthly pay cycle means employees are often unable to pay day-to-day expenses, cover emergencies, or take advantage of immediate financial opportunities. As a result, they are exposed to predatory payday loans and get stuck in endless cycles of debt with unrealistic repayment periods and high interest rates. Earnipay exists to solve this problem and provide an ethical alternative to instant access to pay while helping employers improve employee engagement and retention at zero cost to their business.

“The future of pay is on-demand, and we’re thrilled to be pioneering this incredible solution in Africa. I’m excited to partner with a group of highly respected investors who understand the need for a platform like ‘Earnipay to foster greater access to wages and, most importantly, to improve the financial well-being of income earners in Africa.

Onwuzulike also added that the startup works together with employers to improve employee engagement and productivity. “We are systematically addressing inefficiencies in the way Africa’s workforce interacts with wages and will continue to create products and services with both employers and employees in mind.,” he noted.

Brendan Dickinson, Partner at Canaan said:We have seen access to earned wages growing rapidly in many markets and believe it is a natural choice in Africa. Earnipay quickly established itself with a product specifically designed for payroll behaviors in this region, and early adoption by employers is very strong. Nonso have built one of the strongest teams we have come across across the continent, and we are delighted to have the opportunity to partner with them.

What you should know

The startup was founded by Nonso Onwuzulike and is focused on a financial wellness fintech solution that integrates employers’ payroll and human resource management systems to enable on-demand funding for employees to instantly access their salary earned without interest.

With its flexible payroll access, Earnipay says it helps organizations improve employee engagement and productivity by relieving the financial stress caused by eliminating the need for a payday advance or predatory payday loans with interest rates.

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