Clair, the innovative FinTech firm dedicated to transforming financial services for workers, has successfully secured a substantial $175m in its latest funding round.
Clair’s commitment to aiding frontline workers gain immediate access to their wages has paved the way for an exciting development in the financial landscape.
The financial boost comprised of $150m for its consumer lending program, backed by FDIC-insured bank, Pathward N.A., and an additional $25m in equity.
Thrive Capital headlined the equity round, with contributing investments from Upfront Ventures and Kairos, further strengthening Clair’s venture capital coffers to a total of $45m. As part of the agreement, Michael Presser, an investing partner at Kairos, will join Clair’s team as a board observer.
The company’s unique proposition lies in its provision of a consumer-friendly, on-demand pay solution. The system enables frontline workers to procure wage advances from Pathward N.A., fostering access to Clair’s FDIC-insured spending and savings accounts among other financial amenities.
With the fresh funding, Clair aims to expand its team and catalyse wider adoption of its services, primarily focusing on the 56% of the US workforce comprised of 76 million hourly workers. Clair’s app, already assisting more than 50,000 workers in receiving their pay as soon as their shifts end, provides a meaningful alternative to waiting weeks for paycheques, entirely free of charges.
Additional features included in the service offering are Clair for Employers, a holistic financial wellness benefit package for employees of firms not already partnering with Clair. By integrating with payroll providers seamlessly and at no cost, the service enables HR teams to save time and resources while maintaining full compliance.
“Front-line workers are astonishingly underserved, as big banks don’t see them as profit drivers and aren’t building the solutions they need,” stated Nico Simko, co-founder and CEO of Clair. Expressing gratitude towards investors, partners and employers who share Clair’s mission, Simko highlighted the importance of timely pay for Americans living paycheck to paycheck.
Pathward President Anthony Sharett and Kareem Zaki, Partner at Thrive Capital and Clair board member, shared their positive sentiments regarding their collaboration with Clair, emphasising their shared goals and Clair’s adherence to compliance.
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