US fintech Clair lands $25m equity funding to power on-demand pay
New York-based fintech start-up Clair has secured $25 million in equity funding to fuel the growth of its consumer on-demand pay solution backed by Pathward, an FDIC-insured bank.
Clair raises $25m equity funding
The equity funding round was led by Thrive Capital, with participation from Upfront Ventures and Kairos, and brings Clair’s total venture capital funding to date to $45 million.
The company has also secured a “consumer lending program” in partnership with Pathward, which consists of a participation amount of up to $150 million, allowing front-line workers to access wage advances “as soon as they finish their shifts” from Pathward via Clair spending and saving accounts.
The start-up has also launched Clair for Employers, a set of free financial wellness benefits for employees of businesses that are not on Clair’s partner platforms. The solution integrates directly with companies’ payroll providers and offers additional features including cashback.
“Front-line workers are astonishingly underserved, as big banks don’t see them as profit drivers and aren’t building the solutions they need,” comments Nico Simko, co-founder and CEO of Clair.
“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.”
Clair plans to use the funding to expand its team and promote take-up of its product among the 76 million hourly workers that represent 56% of the US workforce.
Founded in 2019, the start-up claims it has experienced 10x revenue growth over the last year. Other than on-demand pay, it also offers digital banking services including a spending account, a high-yield savings account and a Mastercard debit card issued by Pathward.
