Access to on-demand pay is a huge opportunity in Africa, with over 70% of the African workforce (500 million people) being paid every 30 days and living on paycheck to paycheck. The 30-day pay cycle has led 40% of the workforce to live in an endless cycle of debt as they struggle to match their income to their daily expenses, emergencies and opportunities. African companies are struggling to provide scalable solutions for employees to access their daily salary while they work there due to legacy payroll process, lack of cash on hand and remaining internal salary advance a tedious and manual affair.
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 have full oversight and set limits for the percentage of salary employees can take out 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 Nonso Onwuzulike said, “Financial worries are the number one cause of distractions in the workplace. 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. I am delighted to partner with a group of highly respected investors who understand the need for a platform such as Earnipay to foster greater access to wages and, most importantly, to improve the financial well-being of people who earn an income by Africa.
Flutterwave’s latest backers include some of the world’s most respected investors, led by B Capital Group, and with participation from Alta Park Capital, Whale Rock Capital, Lux Capital, among others. Several existing investors who also participated in previous rounds also followed this round, including Glynn Capital, Avenir Growth, Tiger Global, Green Visor Capital and Salesforce Ventures.
The new funds will fuel Flutterwave’s ambitious expansion plan to accelerate customer acquisition in existing markets and growth through mergers and acquisitions, and develop complementary products while encouraging innovations in the development of its products and services. The company will share more details at the Flutterwave 3.0 event. The virtual event is billed for February 18, 2022.