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Clair Raises $25M More to Pay Millions of Employee Benefits On Demand – AlleyWatch

Nearly two-thirds of Americans live paycheck-to-paycheck, according to CNBC’s “Your Money Financial Confidence Survey.” Nearly half will not be able to cope with an unexpected $400 expense. With employees and their families running at very tight profit margins, improving cash flow timing can be the difference between retaining employees and letting them go. claire is a free on-demand payroll platform that allows field workers to get paid up front without the onerous fees charged by traditional payday lenders. Recently launched startups passwordis a national FDIC insurance backpack, offering spending and high-yield savings accounts, a lending program in addition to a range of other digital banking services, including a Debit Mastercard with branded rewards. increase. Clair integrates with popular workforce platforms such as Gusto, TCP, 7shifts and When I Work to help employees finish their shifts instead of waiting weeks for checks that take days more to cash. We provide seamless access to receive payments on time. The company also aims to enable employers not using one of its integrated platforms to offer on-demand payroll as a benefit without investing significant time and resources in getting it up and running. Launched Clair for Employers. This banking-as-a-service provider is already trusted by organizations such as Viking, Everview, Sunstone Health & Rehabilitation, as well as franchisees such as Sheraton, Doubletree by Hilton and GNC.

alley watch We spoke with Clair CEO and co-founder Nico Simco To learn more about the business, the company’s strategic plans, the latest funding round, and more…

Who are the investors and how much did you raise?

The company has $100 million in funding, including $25 million in VC equity funding and a consumer finance program with up to $150 million in participation from national banking partner NA Pathward® (“NA Password”). Raised $75 million. Thrive Capital is the lead investor, Upfront Venturesand Kairos I am joining. This Series A extension round brings our total equity raised to his $45 million.

What products or services does Clair offer?

Why does it take two weeks to get paid when you can send money to your friends in seconds? Clair created the first and only digital banking app with free on-demand payments. Not only do you get a high-yield savings account*, no high or hidden fees, and 40,000 fee-free in-network ATMs**, it’s also free for money you’ve already worked but haven’t spent yet. It means you have access. not yet paid.

Through integrations with platforms such as TCP Software’s Humanity Scheduling, When I Work, Gusto Embedded, and 7shifts, 50,000+ frontline workers can get their paychecks as soon as their shifts end, instead of waiting weeks for paychecks. I have helped you to receive Zero upfront fees.

As part of this news, we also announced Clair for Employers, a free and comprehensive set of financial wellness benefits for employees at companies not using our partner’s HR platform. Offering on-demand payroll benefits typically means that HR teams must devote significant time and resources to deploying and managing them, but Clair for Employers works with corporate payroll providers to It’s free, seamlessly integrated, and requires no ongoing maintenance. In addition, employees of companies using Clair for Employers can take advantage of additional features such as his 3% cashback*** on gasoline and groceries purchased with the Clair Debit Mastercard®.

What inspired you to start Clair?

When I was in school, I worked an hourly job, and it took weeks for my paycheck to arrive in the mail. And sometimes there were mistakes and it took even longer to receive the money earned. After graduating from university, he worked at JP Morgan and got deep into the fintech space. That’s when I realized I could offer free prepayments to consumers by providing them with a revenue-generating banking app.

How is Claire different?

All companies in our sector make most of their revenue from the fees they charge consumers for getting paid up front. We are the only company to actually lose money on prepaid offerings and most of our revenue comes from banking services provided by NA Password. As a result, we spend most of our time building banking apps that our customers love and want to keep as their primary banking app after they retire. Additionally, we are the only company with a national bank offering prepayment through our partnership with Password NA. This is better for consumers as it means that the institutions that prepay funds are well regulated.

What markets is Clair targeting and how big is it?

Our target is field workers and the companies that employ them. With 76 million hourly workers in the U.S. making up 56% of his workforce, there is a huge market opportunity. Clair is popular in a variety of industries, from healthcare to food and beverage, hospitality and retail. With labor shortages continuing and the number of job openings outstripping job openings by 4 million, we expect slowing economic growth, rising inflation and supply chain disruptions. If this shortage can be resolved, the impact on the market will be immeasurable.

As workers start demanding financial benefits, we find that companies that offer these benefits are able to attract and retain employees. Access to on-demand payroll is a top benefit, especially when savings are low, as it allows front-line employees to quickly and easily access funds for unexpected expenses. Our employer partners see improved employee morale, retention, increased productivity and enhanced shifts. According to our internal research, an employee who uses Clair gets 15% more shifts and stays 25% longer than he did. It can have a significant impact on a company’s bottom line.

What is your business model?

We provide our customers with a banking app, making wage advance free by default for access by both employers and workers. Instead of charging upfront fees to employees who are already struggling to make ends meet, Clair makes money from merchant fees every time a customer uses his Clair Debit Mastercard.

Companies such as payday financiers and wage access firms that charge upfront fees are being incentivized by the wrong things. So you’re profiting when your customers aren’t doing well financially. Our unique model aligns our goals with yours. We make money when they have money to spend.

What was the fundraising process like?

The most difficult part of the funding process was finding a national bank with consumer finance expertise to help build a novel approach to access to earned wages. Luckily, NA Passwords was excited to partner with Clair to deliver a new on-demand payroll solution that gives frontline workers access to wages between payroll cycles.

In our equity fundraising, we were lucky that our Series A lead investor showed willingness to lead again. So the primary goal was to pick other investors to add to the round. I was lucky enough to stumble upon Kairos Ventures, who were developing another fintech app called Bilt. The Kairos team has been a great partner for us on this journey.

What was the biggest challenge you faced while fundraising?

The hardest part was choosing the right investors to partner with. Revenue grew tenfold last year, but he didn’t want to overfund as that can be difficult in this market.

What factors about your business made investors write checks?

Our investors believe in our mission to give frontline workers access to financial services that help them build wealth and support their families. We are grateful to work with investors who are excited about the progress we have made so far. They know it takes time to build a category-defining business and they continue to add capital so that we can build on our success and bring this service to more businesses and workers. I wanted to

Our investors believe in our mission to give frontline workers access to financial services that help them build wealth and support their families. We are grateful to work with investors who are excited about the progress we have made so far. They know that building a category-defining business takes time, and they continue to add capital so that we can build on our success and bring this service to more businesses and workers. I wanted to

What milestones do you plan to achieve in the next six months?

We are serious about growing our business in the coming months and expanding our customer base that we have worked so hard to build and maintain. We want our employees to continue to choose Clair not only for its innovation, but also for the superior features offered by our partner banks. We also want employers to trust Clair to be the best financial wellness option for their employees.

What advice would you give to New York companies that haven’t recapitalized their banks?

Focus on business fundamentals and hiring a great team. The capital will follow suit.

Where do you see the company going in the short term?

We use the funds to expand our team and support further growth. We are also very excited about onboarding companies to Clair for Employers. Now that companies can partner directly with Clair instead of going through one of our partner HR platforms, we can support more companies and their employees.

What are your favorite summer destinations in and around the city?

My favorite restaurant is Cafe Paulette in Brooklyn. This is a quaint neighborhood spot with great black people. I spend a lot of time running around Prospect Park.

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