Bengaluru-based Earned Wage Access (EWA) solution provider Refyne, has raised $16 Mn in a Series A round from a string of new investors. The funding will be deployed to expand the technology team and scale growth initiatives.
This round was raised from DST Global and RTP Global. This fundraise comes six months after the fintech startup raised $4.1 Mn in seed funding in December 2020 from QED Investors and Jigsaw VC, who along with XYZ Capital, also participated in the current round. The firm’s total funding now stands at $20 Mn.
Refyne says it provides employers a plug and play software that enables employees to access their real-time earned salary. Employees can withdraw this amount using Refyne’s app at any point before their payday. The financial wellness solution is free for organisations and integrates seamlessly with any existing HRMS(Human Resource Management System) and ERP(Enterprise Resource Management) service.
“When faced with a mid-month liquidity crunch, the apparent options for employees to access quick cash include payday loans or micro-credit schemes. However, these instruments often carry predatory pricing, which further exacerbates employees’ debt obligations and mental wellness,” the startup says
An EWA solution lets employees assume control over when they are paid, allowing them to align their pay dates with their personal financial commitments. With instant access to funds whenever required, employees can obtain emergency funds if a sudden bill or expense occurs, without incurring more debt.
It also makes the employer’s job easier who does not have to spend time tending to pay demands from employees before payday. This time can be utilised for other operations for the company.
Refyne is a mobile-first platform for employees of partner companies to manage their finances and discover innovative ways to track, budget, spend and save their money. According to Refyne, it is an affordable alternative to exploitative short-term credit facilities that helps users cover mid-month expenses without risking debt cycles. The earned salary gets credited to the bank account in less than 30 seconds.
“The need for financial inclusion is more important today than ever before. As the first company in India to provide earned wage access, Refyne can revolutionise the way millions of workers manage their money,” said QED Investors Managing Partner and cofounder Nigel Morris.
Refyne says that it has partnered with almost 100 companies with over 300,000 employees in India and plans to cover more than 1 million workers this financial year. Some of the prominent brands Refyne has partnered with include CARS24, Rebel Foods, Cafe Coffee Day, Hira Group, Chai Point, Wow! Momos, among several others.
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