Fintech startup Earnd has raised $2.5 million from a number of investors including NAB Ventures and Zip Co executives and Pocketbook founders Alvin Singh and Bosco Tan.
Earnd enables employees access to their pay packet as they earn it to minimise the need for payday lenders.
Other investors include, John Banfield CEO at Bpay, Andrew Birch COO at MYOB and Rob Lederer, guiding the team with their experience working within the startup and financial services industries.
The round will be used to grow the business and expand its presence in the Australian market with key hires and continued product development.
The company was founded by Josh Vernon, CEO and Serge Kotlyarov, CTO.
Earnd said it aims to help drive financial wellness across the country by giving employers the option to grant their employees access to their pay as they earn it.
As a platform agnostic tool, Earnd can integrate with leading payroll, time and attendance systems, allowing employers to easily and quickly switch the solution on for their staff.
For employees, Earnd is often free, depending on what model employers choose — an important choice the Earnd team made to ensure the model supports Australian workers.
Customers can access their pay through the app.
Vernon said, “Earnd was created to empower Australians with the ability to manage their own pay. Given the Senate inquiry into Financial Hardship, it couldn’t be a timelier launch. Giving access to pay that has already been earned has the potential to fix the spiralling debt cycles linked to current financial products. There is a clear need for the quick access to funds in times of crisis, but a lack of safe and fair platforms facilitating this.
“The way we’re paid hasn’t evolved for generations, but our spending habits have changed dramatically. Instead of turning to last resort financial instruments, like payday loans, we believe Australians deserve the ability to control their finances in real-time, the way they want to.
“That’s what Earnd does, and we work with employers to pass this on to their workforce without hidden fees or interest. We’re excited to continue growing Earnd by expanding our product offering to achieve our mission of financial wellness for all Australians.”
Todd Forest, managing director at NAB Ventures said, “This is a unique solution that enables people instant access to their pay. Earnd allows this to happen in a frictionless way and enhances employee financial resilience and higher engagement with their employer.”
Forest will join Earnd’s board as part of the investment.