Earnipay Secures $4M Seed Funding to Provide On-Demand Pay
To earn, a fintech solution that provides flexible, on-demand access to employees, closed a $4 million funding round led by Canaan and with participation from XYZ Ventures, Village Global, Musha Ventures, Ventures Platform, Voltron Capital and Paystack CEO Shola Akinlade. Targeting employees across Africa, Earnipay officially launched operations last month (January 2022), having been in development and beta testing since September 2021.
Founded by Nonso Onwuzulike to improve the financial well-being of employees, Earnipay uses its technology to provide employees with the ability to access their earned wages in their accounts flexibly, in real time and without interest. Earnipay partners with employers and seamlessly integrates with their payroll systems to offer its services to employees, who can then track and withdraw their accrued wages through the app. Companies can exercise comprehensive oversight and set limits on the percentage of salary employees can withdraw each month. Since running in beta, Earnipay has served over 20 companies, outsourcing companies and HR solution providers in Nigeria, including Eden Life and Thrive Agric, whose employees have used the app to access their pay more of 1,000 times, indicating high demand for the solution.
With the seed funding, Earnipay will accelerate the development of its technology platform to serve large enterprise employers. In doing so, Earnipay will provide employees with the tools they need to make better financial decisions and improve their quality of life. The company plans to offer its pay-on-demand solution to 200,000 employees by the end of 2022.
Speaking on the funding cycle and the recent launch of Earnipay, CEO Onwuzulike said, “Financial worries are the number one cause of workplace distractions. 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 excited to be pioneering this incredible solution in Africa.