Earnipay, a Nigerian fintech startup focused on providing employees with flexible access to their wages, has successfully raised $4 million in seed funding. The round was led by Canaan Partners, with additional participation from investors like XYZ Ventures, Village Global, Musha Ventures, Voltron Capital, Ventures Platform, and Paystack’s CEO, Shola Akinlade.
Launched in beta in late 2021 and officially rolled out early in 2022, Earnipay aims to provide on-demand salary access to 200,000 employees by year-end. The company addresses a pressing challenge in Africa, where many workers are paid monthly but often live paycheck-to-paycheck. This mismatch forces many to rely on costly payday loans or advances, trapping them in cycles of debt.The platform allows employees to withdraw a portion of their earned salary before the end of the month. It integrates with employer payroll systems to calculate and prorate daily salaries, offering employees flexibility in accessing their earnings. For example, if a worker earns ₦300,000 monthly, they can withdraw an allocated daily or workday amount set by their employer.
Earnipay finances these advances on behalf of employers, enabling companies to maintain cash flow stability. At the end of each month, employers reimburse the fintech. For businesses that prefer managing the payments themselves, Earnipay offers automated reconciliation tools. Employees are charged a nominal fee per withdrawal, depending on the amount accessed.
The founder, Nonso Onwuzulike, shared that the idea for Earnipay emerged from his personal experience running a recycling business. Observing how delayed monthly payments affected productivity and retention among his employees, he developed a system to offer weekly or bi-weekly wages. This concept evolved into Earnipay, designed to provide formal sector employees with financial flexibility while improving employer retention and employee satisfaction.Since its beta launch, the platform has gained traction, with over 20 businesses and organizations adopting the service. Thousands of employees have collectively accessed their salaries through the app over 1,000 times.
The funding will support Earnipay’s plans to expand its services, targeting larger enterprises and growing its regional footprint. Additionally, the company is developing tools to enhance financial literacy and empower employees to make informed financial decisions.
Earnipay’s entry into the earned wage access space aligns with a growing trend across emerging markets. Similar platforms have gained significant traction globally, and investors believe the concept holds enormous potential in Africa, given the region’s unique payroll dynamics.This investment marks a significant milestone for Earnipay, enabling it to scale its operations and address financial challenges faced by workers across the continent.
