FlexxPay, a fintech operating in the UAE and KSA, has raised a $3 million Pre-Series A funding round, led by JIMCO and Target Global. Several other investors participated in the round including Wamda, DIFC FinTech Fund, March Holding, Arzan VC, Sukna Ventures, Nuwa Capital, and VentureSouq.
The round is a mix of both equity and venture debt and follows a $1.5 million Seed round in December 2019.
FlexxPay enables access to already-earned income (salaries, commissions, pensions, and end of service benefits) via its platform. Companies benefit largely from increased employee motivation and productivity while they see a significant decrease of reported sick leaves due to reduced financial stress on employees, the Shari’a compliant employee benefits platform states. HR departments’ workload is also reduced by around 20% by eliminating time spent processing salary advance requests, it has shared.
“The continued support of our existing investors and the addition of new investors is invaluable to FlexxPay’s growth and evolution. We are solving a real-world problem for employers and their employees. Financial stress directly impacts the bottom line of a company’s P&L and is one of the main factors for employees being less productive and reporting sick. Giving people access to what they have already earned is just the right thing to do. They’ve earned it, they deserve it.”Michael Truschler, Co-founder and CEO, FlexxPay
The social impact technology startup has offices in Europe, the GCC, and has plans to launch in Bahrain next month, expanding to the rest of MENA in the near future.
FlexxPay’s client list covers companies from various industries including insurance, telecoms, retail, logistics, financial services, and real estate. The model and its benefits have widely been proven in the US and Europe with players such as Earnin, PayActiv, and Dailypay in the US, and Wagestream and Hastee in the UK.
“We invested in FlexxPay to back an exceptional team with a strong background of building a business in the past and has developed a very scalable solution that benefits both, the companies and the employees.”Khaled Talhouni, Managing Partner, Nuwa Capital
Saleh Al Akrabi, CEO of DIFC Properties and Head of Investments added, “DIFC FinTech Fund is committed to supporting innovative FinTech start-ups in the region at different stages of their growth, and we participated in the follow-on investment round of FlexxPay to accelerate their growth plans for the region.”
If you see something out of place or would like to contribute to this story, check out our Ethics and Policy section.