Earnipay raises $4m to fund instant salary access
By Jeph Ajobaju, Chief Copy Editor
Fintech solution startup Earnipay has received $4 million in a Seed round to provide flexible and on-demand salary access to workers linked up on its app, reducing payroll system hassles for employers and employees alike.
The funding round was led by Canaan with participation by XYZ Ventures, Village Global, Musha Ventures, Ventures platform, Voltron Capital, and Paystack.
Earnipay, launched in January, says it will use the money to improve workers’ financial well-being by partnering employers and integrating with their payroll systems to enable employees track and withdraw their salaries via the app.
Instant salary access
Earnipay CEO Nonso Onwuzulike explained that the fintech helps solve problems around financial worries, which are usually the cause of distractions in the workplace due to salary payment structure in most organisations.
“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” he said.
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Ethical alternative
“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,” Onwuzulike said, according to Nairametrics.
“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 stressed that the startup has been working 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.”
Brendan Dickinson, Partner at Canaan, added: “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.”
Backdrop
Onwuzulike founded Earnipay to target financial wellness fintech solution that integrates employers’ payroll and human resources management (HRM) systems to enable on-demand financing for employees to access their earned salary instantly without interest.
Earnipay says its Flexible Salary Access helps organisations 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.
