Earn, a financial technology solution that provides income earners with flexible salary access based on their needs, has closed a $4 million seed 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) after being in development and beta testing since September 2021.
Founded by Nonso Onwuzulike to improve employee financial well-being, Earnipay uses its technology to offer employees the ability to flexibly withdraw their earned salaries into their accounts in real time and with no interest. Earnipay works with employers and seamlessly integrates with their payroll systems to offer its services to employees, who can then track and withdraw their accrued salaries through the app. Businesses can fully oversee and set limits on the percentage of salaries employees can withdraw each month. Since beta, Earnipay has served over 20 companies, outsourcers and HR solution providers in Nigeria, including Eden Life and Thrive Agric, whose employees have used the app over 1,000 times to access their payroll, which is a indicates strong demand for the solution.
With the seed funding, Earnipay will accelerate the development of its technology platform to serve employers at large corporations. In this way, Earnipay provides employees with the tools they need to make better financial decisions and improve their quality of life. The company plans to offer its on-demand payroll solution to 200,000 employees by the end of 2022.
Regarding the funding round and the recent launch of Earnipay, CEO Onwuzulike says, “Financial concerns are the number one source of distractions in the workplace. The monthly pay cycle means employees are often unable to afford day-to-day expenses, cover emergencies, or take advantage of immediate financial opportunities. As a result, they are exposed to predatory payday loans and stuck in endless debt cycles with unrealistic payback periods and expensive interest rates. Earnipay is designed to address this issue and provide an ethical alternative to instant pay access while helping employers improve employee engagement and retention at no cost to their business. The future of salary is on-demand and we are excited to be pioneering this amazing solution in Africa.