Fintech startup Jify raises $10M from Accel and Nexus Venture Partners

Jify, a fintech startup, has raised $10 million from Accel and Nexus Venture Partners in its Series A funding round.

Jify will use the new funding to bolster its fintech product offering and accelerate customer acquisition across industries and cities, while driving workforce adoption.

“This round of financing will provide Jify with the capabilities to scale in the Indian market. We will be able to build our teams nationwide, deliver the best in technology, and create an innovative product experience for employers and employees. The funding will also help us improve our customer acquisition capabilities,” explained Anusha Ramakrishnan, Co-Founder and COO, Jify.

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The fintech company has further observed that a significant portion of India’s workforce is dependent on wages, leading to erosion of their wealth.

According to Jify, about 70% of India’s 450 million working people live paycheck to paycheck and as a result resort to emergency credit or high-cost payday loans, with rates of high interest of up to 35%.

This pushes them towards financial stress, which impacts their overall well-being. The workforce sees an erosion of 30% of its income per year, which represents 50 billion dollars.

The fintech company said the main causes of the erosion of wealth include high cost credit, lack of discipline to save 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 fees.

Commenting on the same, Manasi Shah, Investor and VP, Accel said, “Jify is leading an emerging wave of financial inclusiveness and benefits for India. Jify creates a win-win solution for the Indian workforce who can better manage cash flow and savings, and for employers who can deliver critical benefit and reduce attrition. Accel has known the Jify team since they raised pre-seeds through the Atoms program.

The 2021-founded fintech company seeks to ease financial concerns by working with companies to provide their employee base with “no cost, no risk” access to earned pay.

Read also | Fintech start-up WeRize raises $15.5 million

Jify believes that by removing the 30-day pay period and allowing employees to have “access to earned wages,” some of these confusions can be resolved. Jify also offers money management tools and tips to help people take their first steps towards financial security.

In addition to keeping tabs on user spending, the fintech platform supports smart budgeting, helps set practical savings goals, and provides access to simple financial advice with its digital map.

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