FlexxPay secures extra $3m funding ahead of Bahrain launch

Social impact technology company operating in the UAE and Saudi Arabia raises $3m in a pre-series A round

FlexxPay was founded in 2018 and initially raised $1.5 million in its seed round

FlexxPay, a social impact technology company operating in the UAE and Saudi Arabia, has raised $3 million in a pre-series A round.

The round was joined by leading international and regional investors including JIMCO, Target Global, Wamda, DIFC FinTech Fund, March Holding, Arzan VC, SuknaVentures, Nuwa Capital and VentureSouq.

The Middle East’s leading Shari’a compliant employee benefit platform providing early access to earned income, has plans to launch in Bahrain next month and expand to the rest of MENA in the near future.

FlexxPay was founded in 2018 and initially raised $1.5 million in its seed round. Like the seed round, this round consists again of a mix of equity and debt.

FlexxPay enables access to already-earned income - salaries, commissions, pensions and end of service benefits - via its platform.

FlexxPay’s client list covers companies from various industries including insurance, telecoms, retail, logistics, financial services and real estate.

FlexxPay said it will use the funds to further enhance its technology platform and to grow its corporate client base in the region.

FlexxPay enables access to already-earned income - salaries, commissions, pensions and end of service benefits - via its platform

Companies benefit largely from increased employee motivation and productivity while they see a significant decrease of reported sick leaves due to reduced financial stress on employees, FlexxPay said in a statement.

It added that HR departments’ workload is also reduced by around 20 percent by eliminating time spent processing salary advance requests.

Similar FinTech platforms have become increasingly popular among corporations and users in the United States, Europe and Australia.

Khaled Talhouni, managing partner at Nuwa Capital said: "We invested in FlexxPay to back an exceptional team with a strong background of building a business in the past and has developed a very scalable solution that benefits both, the companies and the employees."

Saleh Al Akrabi, CEO of DIFC Properties and head of Investments

Saleh Al Akrabi, CEO of DIFC Properties and head of Investments said: “DIFC FinTech Fund is committed to supporting innovative FinTech startups in the region at different stages of their growth, and we participated in the follow-on investment round of FlexxPay to accelerate their growth plans for the region.”

Michael Truschler, co-founder and CEO of FlexxPay added: “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.”

Source: Arabian Business Industries