Employee financial wellness platform Minu has scored $14m in its Series A round, which was led by FinTech Collective.
Participation also came from VEF, XYZ Ventures, FJ Labs, DocuSign founder Tom Gonser and Gusto CFO Mike Dinsdale. Previous Minu backers QED Investors, Next Billion Ventures and Village Global also supplied capital to the Series A.
The investment also included a $2.5m of debt from Banco Sabadell Mexico.
Funds will be used to win more enterprise deals in Mexico by scaling its sales team and bolstering its value proposition to include financial education, savings, smart spend and insurance products. Additionally, the company will begin its regional expansion.
Founded in 2020, the company has built a pay on demand solution in Mexico, which has more than 100 large enterprise clients. These clients include TotalPlay, Telefonica, Scotiabank, OfficeMax, Rappi, Adecco, Manpower and more.
Its goal is to solve the employee liquidity gap between paychecks to reduce financial stress and avoid loans. The platform offers 24/7 instant access to employees’ earned wages for a $2 fee.
Minu claims 75% of workers in Mexico are living paycheck to paycheck, with average wages of $550 a month. Of these, 44% take out loans to cover their recurring basic expenses and only 12% have a savings account.
Minu CEO Nima Pourshasb said “For today´s consumer who lives in an on-demand economy, not having access to the motor of their financial health – earned wages that legally belong to them – is surprisingly outdated.
“It generates high anxiety and forces absurdly sub-optimal financial decisions in a country with no usury laws. The pandemic has jumpstarted the momentum and urgency for this correction, and Minu is leading the charge towards a financially empowered and resilient workforce.”
With the close of the round, the FinTech has raised a toral of $20m in funding.
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