FlexxPay raises $3m in pre-series A round to enhance technology platform

FlexxPay, a cloud-based B2B fintech employee benefits platform, has raised $3m in a pre-series A round.

FlexxPay enables access to already-earned income (salaries, commissions, pensions and end-of-service benefits) via its platform. It is currently operational in the UAE and Saudi Arabia with plans to launch in Bahrain next month, and expand to the rest of MENA in the near future.

FlexxPay will use the funds to further enhance its technology platform and grow its corporate client base in the region. The round was joined by international and regional investors including JIMCO, Target Global, Wamda, DIFC FinTech Fund, March Holding, Arzan VC, SuknaVentures, Nuwa Capital and VentureSouq.

FlexxPay was founded in 2018 and initially raised $1.5m in its seed round. Likened to the seed round, this fundraising attempt also consists of a mix of equity and debt.

Khaled Talhouni, managing partner at Nuwa Capital, said: “We invested in FlexxPay to back an exceptional team with a strong background of building a business in the past and has developed a very scalable solution that benefits both, the companies and the employees.”

Saleh Al Akrabi, CEO of DIFC Properties and head of investments, said: “DIFC FinTech Fund is committed to supporting innovative fintech startups in the region at different stages of their growth, and we participated in the follow-on investment round of FlexxPay to accelerate their growth plans for the region.”

DIFC invested in four fintech startups – FlexxPay being one of them – via its accelerator programme, it announced last June.

Read: Dubai’s DIFC invests in four fintech startups via its $100m fund

“The continued support of our existing investors and the addition of new investors is invaluable to FlexxPay’s growth and evolution,” said Michael Truschler, co-founder and CEO of FlexxPay.

“We are solving a real-world problem for employers and their employees. Financial stress directly impacts the bottom line of a company’s P&L and is one of the main factors for employees being less productive and reporting sick. Giving people access to what they have already earned is just the right thing to do. They’ve earned it, they deserve it.”

Companies from various industries including insurance, telecoms, retail, logistics, financial services and real estate, form part of FlexxPay’s portfolio.