Clair is helping hourly workers get paid as soon as they finish a shift
US fintech Clair has raised $25m in equity funding to accelerate adoption of its solution for earned wage advances.
Thrive Capital led the round, with participation from Upfront Ventures and Kairos, to bring Clair’s total venture capital funding to $45m.
Clair backer and partner bank Pathward has also committed $150m to lending via the fintech’s platform, which enables front-line works to receive their wages as soon as they finish a shift.
Founded in 2019, Clair will use the new funding to expand its team and accelerate adoption, targeting the 76m hourly workers who represent 56% of the US workforce.
New York-headquartered Clair also announced the launch of Clair for Employees, a set of financial wellness benefits for employees of businesses that are not on Clair’s partner platform.
Nico Simko, co-founder and chief executive officer of Clair, believes front-line workers are underserved as big banks don’t see them as profit drivers.
He said: “This lack of support is unfair when half of Americans live paycheck to paycheck and don’t have $500 in savings for an emergency, so timely pay is crucial for them to keep up with their bills.
“We’re grateful to join forces with investors, partners and employers who believe in our mission of enabling people to responsibly customise their pay cycles to their needs.”
Anthony Sharett, president of Pathward, commented: “Our partnership has exponential power to increase financial access for more Americans regardless of the economic cycle.”
Kareem Zaki, partner at Thrive Capital and Clair board member, added: “Clair’s product has enabled both workers and employers to adapt in a uniquely challenging labour and economic environment.”