Flexee’s board has announced closure of its seed round. The Polish company raised capital amounting to up to PLN 13 million in total, of which PLN 9 million as debt financing and PLN 4 million as equity transactions. Investment firm JR HOLDING ASI S.A. has become the lead investor.
The company’s innovative product
Flexee provides users of its app with access to their salary in real time; in other words, it allows them to withdraw money earned on demand – in advance, without waiting until pay day. The service caters to all those who might need money before pay day due to unexpected expenses. Regardless of the type of contract an employee has with their employer, Flexee allows them to draw pay even for each day of work. The money shows in the employee’s bank account within seconds after pressing the “Withdraw” button.
– Flexee attracts new customers. They increasingly appreciate the potential of the pay-on-demand service, so the pipeline is expanding all the time. Employees value our modern benefit very highly, while employers see the value in the strategy of appreciating their employees, which will have a measurable impact on strengthening their loyalty, increasing motivation and, as a result, boosting the business of employers who pay attention to the needs of their employees – says Andrzej Nowak, CEO and founder of Flexee.
The solution was developed in the wake of the ‘salary on demand’ trend popular in Anglo-Saxon countries and changes in the economy moving towards the use of ‘on demand’ services and products, which are gaining an ever expanding group of supporters.
Up to PLN 13 million in the seed round
In the investment agreement, the parties have committed to provide a total of up to PLN 13 million in capital for Flexee’s development. With the capital raised, Flexee expects to deliver its application to at least several tens of thousands of employees in 2022.
– We are excited about the prospect of cooperation with an investor as experienced as JR HOLDING. We see great potential in creating synergies with the new investor in terms of growing our business, gaining new customers and developing technology. High gains from the round will enable us to significantly accelerate the growth of our start-up, guarantee that our service levels will be maintained at the highest level and enable us to provide further seamless customer service – comments Andrzej Nowak, CEO and founder of Flexee.
– Flexee already has a portfolio of contracts with clients (employers) in various sectors. Funding provided in the current round will guarantee the possibility of providing the service to all interested clients. We see a considerable potential for this solution, innovative on the Polish market, which is confirmed by the interest from clients. For the company, being included in the JRH portfolio is also an opportunity to cooperate with our companies, such as KBJ. This transaction is in line with our strategy to invest in industries of the future and further diversify our portfolio – adds January Ciszewski, CEO and main shareholder of JR HOLDING.
Modern technology – lower operating costs
Flexee has been developed using state-of-the-art technology and security systems used by banks, and the processes are fully automated so there is no additional work required from the client’s payroll team. Money paid out and fees are settled when the final amount of the employee’s monthly salary is credited to their account. Fast, user-friendly automated processes, low risk of defaults, and the ability to scale the service to multiple users simultaneously, translate to significantly lower costs of operation and user acquisition. As a result, Flexee is able to deliver its service over ten times cheaper than financing services available on the market today, such as bank loans or instant loans. Flexee services are provided based on a transparent commission and subscription-based model.
About JR HOLDING ASI:
JR HOLDING ASI S.A. is a company listed on the NewConnect market since 2012, focusing on investment activities and involvement in companies from the digital business, renewable energy, computer games, medical, biotechnology and modern media sectors. According to its strategy, the company intends to achieve PLN 3 billion worth of assets in its investment portfolio by the end of 2022, to undertake its first investments in foreign and global companies, and also, in 2021-2022, to invest PLN 200-500 million in Digital Business projects, among others. The company has initiated the process of transferring its shares from NewConnect to the main market of the Warsaw Stock Exchange.