Jify, a fintech startup, has raised $10 Mn from Accel and Nexus Venture Partners in its Series A round of funding.
Jify is going to use the fresh funding to strengthen its fintech product offering, and ramp up customer acquisition across sectors and cities, while also driving adoption among the workforce.
“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. The funding will also help us to enhance our client acquisition capabilities,” he explained Anusha Ramakrishnan, Co-Founder, and COO, Jify.
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The fintech company further observed that a sizable portion of the Indian workforce relies on salaries, which results in erosion of their wealth.
As per Jify, approximately 70% of India’s 450 Mn workforce lives paycheck-to-paycheck, and, as a result, resorts to high-cost emergency credit or payday loans, with high-interest charges upwards of 35%.
This drives them towards financial stress, impacting their overall well-being. The workforce sees an erosion of 30% of their income annually, which adds up to $50 Bn.
The fintech company said that the primary causes of wealth erosion include high-cost credit, a lack of discipline in saving money among younger generations, and the employed workforce. The company added that less than 12% of millennials save their income and a majority face overdraft charges.
Commenting on the same, Manasi Shah, Investor and Vice-President, Accel said, “Jify is leading an emerging wave of financial inclusivity and benefits for India. Jify creates a win-win for the Indian workforce which can better manage cash flow and savings, and for employers who can offer a critical benefit and reduce attrition. Accel has known the Jify team since they had raised pre-seed via the Atoms program.”
The 2021-founded fintech company seeks to allay financial concerns by working with corporations to provide their employee base with ‘No cost, No risk’ earned salary access.
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Jify believes that by removing the 30-day pay period and allowing employees the option to receive ‘Earned Salary Access,’ some of these muddles can be cleared up. Jify also offers money management tools and advice to assist people in taking their initial steps towards financial security.
In addition to keeping tabs on user spending, the fintech platform supports smart budgeting, assists in setting up practical savings goals, and provides access to simple financial advice along with its digital card.