Fintech startup Jify raises $10 million 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 fresh funding to strengthen its fintech product offering, increasing customer acquisition across sectors and cities, while increasing adoption among the workforce.
“This round of funding will give Jify the ability 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 improve our capabilities for customer acquisition,” explained Anusha Ramakrishnan, Co-Founder, and COO, Jify.
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The fintech company further observed that a significant portion of the Indian workforce is dependent on wages, resulting in the erosion of their wealth.
According to Jify, roughly 70% of India’s 450 million workforce lives paycheck to paycheck, and as a result resort to expensive emergency or payday loans, with high interest charges of upwards of 35%.
This drives them towards financial stress, affecting their overall well-being. The workforce sees an erosion of 30% of their income annually, amounting to $50 billion.
The fintech company said the main reasons for 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 earnings and a majority face overdrafts.
Commenting the same, Manasi Shah, Investor and Vice President, Accel said, “Jify is leading a new wave of financial inclusion and benefits for India. Jify creates a win-win for the Indian workforce who can better manage cash flow and savings, and for employers who can offer a critical advantage and reduce attrition. Accel has known The Jify team since they had pre-seeded via the Atoms program.”
Founded in 2021, the fintech company seeks to mitigate financial concerns by partnering with companies to provide its 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 giving employees the option to receive “earned pay access,” some of this confusion can be cleared up. Jify also offers money management tools and advice to help people take their first steps towards financial security.
In addition to keeping track of user spending, the fintech platform supports smart budgeting, helps set practical savings targets and provides access to simple financial advice together with its digital card.