Fintech firm Jify.co has said that it has raised $10 million in its Series A round from Accel and Nexus Venture Partners.
Jify.co, in a release, said that it will use the funding "to strengthen its fintech product offering, ramp up customer acquisition across sectors and cities, while also driving adoption among the workforce."
The start-up noted that a major chunk of India's workforce survives on salary and this results in erosion of their wealth.
"Approximately 70 per cent of India’s 450 million workforce lives paycheck-to-paycheck, and, as a result, resorts to high-cost emergency credit or payday loans, with high-interest charges upward of 35 per cent. This drives them towards financial stress, impacting their overall well-being. The workforce ends up seeing an erosion of 30 per cent of their income annually which adds up to $50 billion," Jify.co stated.
The company also added that high-cost credit and lack of savings discipline among younger generations and the employed workforce are also the prime factors for wealth erosion. "Only less than 12 per cent of millennials save their income and a majority face credit overdraft charges," the company further said.
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 who 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."
Jify, founded in 2021, aims to resolve financial concerns by partnering with corporates to offer "No cost, No risk" earned salary access to their employee base.
Anand Datta, Principal Nexus Venture Partners, said, "There is a prominent gap in the market, particularly, in the consumer finance space, where most professionals are either misinformed or uninformed of the basics of their financial wellness. This stems from the lack of financial products which are customized to suit their needs and at the same time easy to access from a trusted platform."
The fintech platform also tracks user spending, helps set-up practical saving goals, facilitates smart budgeting, and helps access to simplified financial advice, accompanied by its digital card.
Anusha Ramakrishnan, co-founder and COO, Jify, said, "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."
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