Earnipay, a financial technology solution startup, has received a Seed round of $4 million to provide flexible and on-demand salary access to income-earners
The funding round was led by Canaan and also saw participation from XYZ Ventures, Village Global, Musha Ventures, Ventures platform, Voltron Capital and Paystack.
The platform which was officially launched in January 2022 wants to use the new funding to improve employees’ financial well-being by partnering with employers and seamlessly integrating with their payroll systems to offer its services to employees, who can then track and withdraw their accrued salaries via the app.
What they are saying about the funding
Nonso Onwuzulike, CEO, Earnipay said that the fintech helps to solve problems around financial worries, which are usually the cause of distractions in the workplace due to the salary structure of payment in most organizations.
He said, “The monthly pay cycle means employees are often unable to afford daily expenses, cover emergencies or take advantage of immediate financial opportunities. As a result, they become exposed to predatory payday loans and get stuck in unending debt cycles with unrealistic payback periods and expensive interest rates. Earnipay exists to address this problem and offer an ethical alternative to instant salary access while helping employers improve employee engagement and retention at zero cost to their business.
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“The future of salary is on-demand, and we’re excited to be pioneering this amazing solution in Africa. I’m delighted to be collaborating with a group of highly respected investors who understand the need for a platform such as Earnipay to drive better access to salaries, and, importantly, to improve the financial well-being of income-earners in Africa.”
Onwuzulike also added that the startup has been working collaboratively with employers to improve employee engagement and productivity. “We are systematically addressing the inefficiencies in how the African workforce interacts with salaries and will continue to build products and services with both employers and employees in mind,” he noted.
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Brendan Dickinson, partner at Canaan said, “We’ve seen earned wage access grow rapidly in many markets and believe it’s a natural fit in Africa. Earnipay has quickly established itself with a product built specifically for the payroll behaviours of this region, and early employer uptake is very strong. Nonso has built one of the strongest teams that we’ve met on the entire continent, and we’re thrilled for the opportunity to partner with them.”
What you should know
The startup was founded by Nonso Onwuzulike and is targeted toward financial wellness fintech solution that integrates employers payroll and HRM systems to enable on-demand financing for employees to access their earned salary instantly without interest.
With its Flexible Salary Access, Earnipay says it helps organizations to improve employee engagement and productivity by relieving financial stress caused by eliminating the need for a salary advance or predatory payday loans with interest rates.