HomeStartupsEarnipay HR Tech Start-up Raises $4M to Assist Employees Salary Startups Earnipay HR Tech Start-up Raises $4M to Assist Employees Salary Nigeria’s GDP has improved post-Covid 19 era. The main contributing factor is the digital acceleration in the economy. The FDI that got into the economy through the tech ecosystem is the anchor that boosted the economic growth of the post- Covid-19 era. Earnipay an HR Fintech start-up firm has raised $4Million in seed funding to help salary earners have workable on-demand flexible financial support from their employers. The seed funding was led by VC firm Canaan. It also includes participating investors like XYZ ventures, Village Global, Musha Ventures, Voltron Capital, Venture Platform, and Paystack Ceo Shola Akinlade. According to data 42% of employees run out of cash before payday. The per capital income of Nigerians is $2,000 and couple with the high expected inflation. The cost of living is very high in the country and having a flexible working environment for employees optimized to a good working environment for productivity. Earnipay has been in a beta version since September 2021. The start-up decided to offer its on-demand salary solution to the market targeting 200,000 employees by the end of 2022. The work force in the continent gets paid monthly prompting a monthly paycheck cycle of 24-27days. To get out of the liquidity trap most employees turn to advances from payday lenders and loan sharks to augment for expenses and emergencies making them collapse into debt cycle. Few businesses through the HR are building a flexible payment structure that allows employees to earn as they work. Founder and CEO of Earnipay Nonso Onwuzurike experimented with this idea with Reaval Ghana based recycling company founded in 2019. During his leadership at Reaval his employees were waste collectors in the informal sector with a payment structure that mandates collecting wages daily. The innovation came from integrating the informal sector payment structure into the formal and finetuning the payment processes. According to the CEO of Earnipay, ” There were adverse effects of that long wait time between pay cycles especially for theses people who didn’t earn a lot of income.” He further reiterated that,” They ended up not being productive because they had money issues and it led to attraction and retention problems for me because there were guys who are used to getting paid immediately but I was paying them once a month and it didn’t make sense to them.” The founder developed a solution to ease the problem and make their payment flexible by paying them daily, weekly or bi-weekly. He innovated with the solution in the formal sector by using data analysis to empower his innovation. Earnipay’s innovation will surely be the fancy and adoption of corporate Nigeria in years to come. Support PisonTechAfrica.com For inspiring tech content and articles, PisonTechAfrica.com is the platform to go. Great content takes a lot of resources; we are poised to motivate young start-ups and give them leverage with our platform. It is a platform for inspiring tech entrepreneurs to display their talents. Africa is the next big thing for technology. PisonTechAfrica.com is the tech media platform committed to positioning Africa in the Fourth Industrial Revolution. Donate Oluwagbenga Oyebanji Share This Previous ArticleUnicorn Group of Companies Helps in Building Digital Innovation Next ArticleSudo Africa, Fintech Start-up Raises $3.7Million Pre-Seed Funding for Card-Issuing API Platform February 28, 2022