The company, which helps advance wages for gig economy workers and contractors, says it will use the funding to continue expanding product offerings and explore markets such as healthcare and debt repayment according to TechCrunch.
Clair allows HR technology and gig companies to offer free instant cash advances to hourly workers and helps workers avoid predatory payday loans. Clair also offers fintech services including API, mobile apps, spending and savings accounts to workers.
The service directly integrates into HR platforms, provides free access for workers and is already used by over 1.5 million hourly and gig workers. Founded in 2019, the latest capital infusion brings its total funding to date to $19.5 million, following a $4.5 million seed round led by Upfront Ventures in October 2020.
The release states that on-demand pay and financial services create value for both HR tech providers and employers, showing that Clair’s no-fee instant advances can improve companies recruiting and retention efforts.
Clair was founded by Nico SImko, Alex Kostecki and Erich Nussbaumer in October 2019. Employees worried about money are 5.8 times more likely to miss deadlines and 2.2 more likely to seek employment elsewhere, highlighting its talking points for offering workers access to early payment options, according to the company’s website.
Recently, payroll solutions and financial wellness have come to the forefront of HR fintech solutions, with companies such as Deel raising $156 million in April and Gusto expanding its payroll service into a financial wellness platform.