Wamda, the Middle East region's leading startup ecosystem enabler, has invested in Dubai-based Shari’a compliant employee benefit platform FlexxPay’s $3 million pre-series A round.
The round saw participation from JIMCO, Target Global, DIFC FinTech Fund, March Holding, Arzan VC, SuknaVentures, Nuwa Capital and VentureSouq.
Founded in 2018, FlexxPay enables employees to access already-earned income such as salaries, commissions, pensions and end of service benefits via its platform, reducing the time and effort spent on regular human resources (HR) processes. It also allows users to set up a savings plan.
According to its release, HR departments’ workload is reduced by around 20 per cent by eliminating time spent processing salary advance requests.
The startup is currently operational in the UAE and KSA, with plans to launch in Bahrain next month and expand to the rest of the Middle East and North Africa (Mena) region in the near future.
“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,” said Michael Truschler, co-founder and CEO of FlexxPay.
FlexxPay will use the funds to invest in technology as well as grow its corporate client base in the region. FlexxPay extends its services to clients from diverse sectors such as insurance, telecoms, retail, logistics, financial services and real estate. The startup also has a growing presence in the US and Europe, servicing clients such as UAE-based Earnin, PayActiv and Dailypay and UK-based Wagestream and Hastee. The startup has so far raised $4.5 million in total.