City-based fintech startup Jify on Wednesday announced a USD 10 million (about Rs 79 crore) fund raise from Accel and Nexus Venture Partners. The 2021-founded company, which calls itself an earned wage access and employee financial benefit startup, will use the funds for strengthening its product and expanding into more cities and sectors, as per a statement.
The company partners with companies to enable employees to access their earned salary on-demand, in real-time and at zero cost, the statement said. It solves for the liquidity mismatch across blue-collar, grey-collar and white-collar workers, for many of whom this is a recurring need, it added. The company said at present approximately 70 per cent of India’s over 450 million workforce lives paycheck-to-paycheck, and as a result, resorts to high-cost emergency credit or payday loans, with high interest charges upward of 35 per cent.
Venture capital fund Accel’s Vice President Manasi Shah said Jify creates a win-win situation, helping employees better manage cash flow and savings, and also enables employers to offer a critical benefit and reduce attrition. “This round of funding will provide Jify with the capabilities to scale within the Indian market. We will be able to build our teams nationally, offer the best in technology and create an innovative product experience for both employers and employees,” its co-founder and Chief Operating Officer Anusha Ramakrishnan said.
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