Earnipay, a Nigerian fintech firm that provides income earners with flexible and on-demand salary access, has raised US$4 million in seed funding to expand its product.
Canaan Ventures leads the seed round, which also includes XYZ Ventures, Village Global, Musha Ventures, Ventures Platform, Voltron Capital, and Paystack CEO Shola Akinlade.
Earnipay, founded last year by Nonso Onwuzulike, connects employer payroll and human resource management systems to enable employees to obtain their earned compensation quickly and interest-free.
The startup began operations officially last month after months of research and beta testing, and has already served over 20 organizations, outsourcing firms, and human resource solution providers in Nigeria.
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“Financial concerns are the leading source of professional distractions. Employees are frequently unable to afford everyday expenses, cover crises, or take advantage of quick financial possibilities due to the monthly pay cycle. As a result, individuals become vulnerable to predatory payday lenders and become trapped in never-ending debt cycles marked by unrealistic payback timeframes and high interest rates,” Onwuzulike explained.
Earnipay intends to use the funding to accelerate the development of its technology platform for major enterprise employers. By the end of 2022, it intends to deliver its on-demand salary solution to 200,000 employees.
