Wamda has invested in UAE-based financial technology (fintech) startup FlexxPay (flexxpay.com). The social impact company provides employee benefit solutions for businesses of all sizes in the Middle East and North Africa (Mena) region. Wamda's investment is part of FlexxPay's latest round of funding, which includes previous individual and corporate investors.
FlexxPay's proprietary cloud-based solution provides employees access to a series of services and benefits, including the ability to access their earned salary and earned commissions whenever needed. By offering an alternative to the traditional payment cycle, FlexxPay aims to reduce the financial stress on employees and increase their motivation, and in turn, enhance productivity, sales and employee retention rates for businesses.
“FlexxPay is targeting a very clear pain point with an innovative and unique solution that will help unlock individuals’ income on an as-earned basis. We are confident in the team’s ability to drive the company forward and are excited to partner with them on that journey,“ said Fadi Ghandour, executive chairman at Wamda.
Commenting on the business and Wamda’s investment, Michael Truschler, co-founder and CEO of FlexxPay said: “FlexxPay solves a real world problem for employers and their employees. Giving employees access to what they have already earned helps them to cover unexpected expenses and motivates them at the same time. Having Wamda as an investor further validates our business model and inspires our team as a whole.”
Financial matters rank top of the list for employees when it comes to primary sources of stress, with 59 per cent stating finances were their primary cause of concern, according to "PwC's 8th annual Employee Financial Wellness Survey" of 2019.
This has created a space for fintech startups to address employee benefits and create a system supporting traditional human resources (HR) and finance teams in addressing pay period timing and bridging the gap between pay and spend times for employees. The model has widely been proven in the US and Europe with players such as Earnin (US), PayActiv (US) as well as Wagestream (UK) and Hastee (UK).
FlexxPay currently operates in the UAE and Saudi Arabia, with plans to expand to the rest of Mena in the near future.
The team will use the funds to enhance its technology platform and will focus on onboarding corporate clients.
FlexxPay previously raised an undisclosed funding round in July 2019 and recently signed a partnership agreement with Riyad Bank, one of Saudi Arabia’s largest financial institutions.