Earnipay, a Nigerian fintech startup, raises $4 million in venture funding for expansion
Earnipay, a Nigerian fintech firm that provides flexible and on-demand salary access to income earners, has raised US$4 million in seed funding to expand its product.
The seed round is led by Canaan Ventures, with participation from XYZ Ventures, Village Global, Musha Ventures, Ventures Platform, Voltron Capital, and Paystack CEO Shola Akinlade.
Nonso Onwuzulike founded Earnipay last year to connect employer payroll and human resource management systems, allowing employees to receive their earned compensation quickly and interest-free.
After months of research and beta testing, the startup launched its official operations last month and has already served over 20 organizations, outsourcing firms, and human resource solution providers in Nigeria.
“The most common source of professional distractions is financial concerns.” Because of the monthly pay cycle, employees are frequently unable to afford daily expenses, cover crises, or take advantage of quick financial opportunities. As a result, people become vulnerable to predatory payday lenders and become trapped in never-ending debt cycles characterized by unrealistic payback timeframes and high interest rates,” Onwuzulike explained.
Earnipay plans to use the funds to speed up the development of its technology platform for large enterprise employers. It plans to provide its on-demand salary solution to 200,000 employees by the end of 2022.
