Mexico’s salary advance startup Minu has secured $14 million in capital through a Series A funding round.
Minu’s investment round was led by FinTech Collective along with contributions from VEF, XYZ Ventures, and FJ Labs. DocuSign founder Tom Gonser and Gusto CFO Mike Dinsdale took part in the round as well. Existing investors QED Investors, Next Billion Ventures, and Village Global also made investments in Minu’s latest round.
The round also includes $2.5 million worth of debt from Banco Sabadell Mexico. Minu has now raised a total of $20 million (to date).
Established in 2019, Minu claims over 100 large enterprise clients, such as TotalPlay, Telefonica, Scotiabank, OfficeMax, Rappi, Adecco, Manpower, Cap Gemini, and public sector clients including the Electoral Institute of the State of Mexico.
Minu provides 24×7 “instant” access to employees’ earned wages for a fixed $2 withdrawal fee.
Company CEO Nima Pourshasb stated:
“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not having access to the motor of their financial health – earned wages that legally belong to them – is surprisingly outdated.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.”
Pourshasb added that his company will use the funds raised to further expand their professional sales team and enhance their value proposition to include financial education, savings, smart spend and various insurance products. Minu will also begin focusing on its regional expansion efforts with head offices in Mexico.
Salary advance services have become quite popular because of the rising costs of goods and services in nearly every country across the globe. Individuals and businesses throughout the world are experiencing a lot of financial pressure and stress, which may have increased significantly for many following the COVID-19 outbreak.
As reported in June of last year, Polish-British Fintech firm Symmetrical.ai, which provides “salary on-demand” services and other products to help people manage their finances, had secured €5.6 million (appr. $6.3 million) in seed funding, in order to bring “ethical” finance to employees.
Maintaining financial wellbeing by effectively managing one’s finances remains a challenge for many people. People face difficulties because of different reasons, including low levels of financial literacy or the inability to acquire the skills and knowledge needed to generate a substantial income consistently.
As mentioned in the announcement (in June of last year):
“Symmetrical.ai technology leverages the data which already exists within the Employer’s IT systems (payroll, time & attendance, etc.) to … improve accessibility and offer fairly priced financial products. As a result, lower income workers might save billions of Euros a year in unnecessary fees and interests.”